The solar industry is monitoring a pending decision in Washington that some believe could dim the momentum of the industry. Vermont businesses are watching closely.
In April the solar company Suniva, which has filed for Chapter 11 bankruptcy, filed a petition with the U.S. International Trade Commissionrequesting an investigation to determine if solar cells being imported into the U.S. are damaging the industry. The commission could impose a tariff of 40 cents per watt for solar cells and at least 78 cents per panel produced outside the U.S.
The tariff, if imposed, could slow the growth of the solar industry in Vermont, according to Renewable Energy Vermont Communications and Operations Associate Austin Davis. “In New England for almost two decades we have seen year after year the price of clean energy technology drop. In Vermont alone we’ve seen the price of solar drop 64 percent in just the last five years. And then looking at clean energy trades growth in Vermont we’ve seen it grow by 28 percent in the last four years. So you know we’ve seen a lot of success. And this is a potential hole on our inertia that we’ve seen to date
Dan Kinney has worked in the solar industry for 17 years and cofounded Catamount Solar six years ago. He’s taking a wait and see attitude about whether tariffs will even be imposed. “I don’t spend all my time being worried but anytime there’s uncertainty in the marketplace it’s a challenge. We’re seeing some hesitancy in customers not sure if they are ready to move forward if the prices might increase and that uncertainty just breeds a slowdown usually. I mean from what I see it’s going to be not the end of the world. It may put us back to 2015 prices. So I try not to get into the hype that the sky is falling. It’s just another uncertainty in a industry that has regulations that change quite frequently. We’re still selling jobs. We’re still installing jobs. It’s unfortunate but I think we’ll weather this.”
Vermont Energy Investment Corporation Director of Policy and Public Affairs Mary Sprayregen says a potential tariff resulting in a price increase would harm the state’s renewable energy goals. “Vermont has a very bold goal of meeting 90 percent of its total energy needs by renewables by 2050. And if we’re going to do that solar is going to have to be part of that and it already is a significant part of that. And any time you increase the price of something that’s coming into the United States, a component of a manufacturing process that is international already it’s an international marketplace, you’re going to drive costs up. I can’t say how much. But it will make it more expensive to reach our goal.”
The International Trade Commission will hold its next hearing on the issue in September.
