Solar panel price set to rise
Farmers thinking of installing solar PV systems could face a significant hike in capital costs, following EU proposals to impose anti-dumping duties on imported Chinese panels.
The EU Commission launched an anti-dumping investigation last September, following complaints from EU panel manufacturers that their Chinese competitors were benefiting from unfair government subsidies.
While a final decision on counterveiling duties is not expected until next month, it has emerged that Brussels is considering an average 47% import tariff, ranging from 37% to 67%. This would take a typical Chinese panel from about 50p/W to 75p/W, making a 250W panel worth £187.
The news has been condemned by solar panel installation companies, who fear they will lose both competitiveness and jobs if panel costs rise.
“These duties, if imposed, will damage the UK solar market, particularly the large-scale ground-mount sector,” warned Paul Barwell, chief executive of the Solar Trade Association.
“It seems absurd that Commissioner De Gucht is supporting these proposals, when the duties will actually result in a net reduction in EU solar jobs, restrict the growth of the solar market and damage Europe’s chances of meeting its 2020 renewable targets.
Mr Barwell said the proposed rate of levy had come as a shock, and would take the price of Chinese panels above the price of European panels. This would drive the whole market higher.
“Solar power has shown impressive cost reductions in recent years, enabling government to gradually reduce subsidies. However, the cost increases resulting from these duties will throw the UK off course from its solar roadmap.”
Broiler producer and solar panel installer Nigel Bell from Gillingham, Dorset, said some suppliers had been offering to cover the cost of any import tariffs retrospectively. But the duty now being talked about was too big to carry and he expected business to grind to a halt until the situation is clarified.
Eastern counties MEP Robert Sturdy said the duties would do more harm than good, costing jobs, forcing up prices for consumers and damaging trading relationships with China.