This week, the Trump administration ruled in favor of
two U.S. solar technology manufacturers to place a
tariff on solar panels imported from abroad. The imports will be taxed
by 30 percent, a move that some say will slow growth of the solar adoption in
the U.S. and which may eliminate jobs in the solar installation sector.
The news arrives at a time of uncertainty for solar
installers in Indiana who are still reeling from the decision to phase out an
incentive for rooftop solar. The 2017 law was intended to sunset what some
called a subsidy for an industry that had outgrown it, but critics say it
could strike a blow to an infant industry in the state.
The tariff was imposed after the International Trade
Commission found that cheap solar panels imported from China caused serious
injury to the U.S. manufacturers. The cheaper panels are credited with creating
a booming installation industry.
Installation jobs grew by 212 percent from 2010 to 2016,
according to the Solar Energy Industries Association. According to the same
report, solar manufacturing jobs grew by 53 percent, which includes
manufacturing solar panels as well as other infrastructure needed for
installation that the tariffs don't address. Over half the jobs in the U.S.
were in installation in 2016.
An
IndyStar review found that the law could lead to the loss of solar
installer jobs in the state. When then-Sen. Brandt Hershman, R-Buck Creek,
crafted the legislation, he did so to address the steep drop in prices of solar
panels from other countries. The new law would undermine the assumptions
Hershman had when wrote the legislation.
Hershman has since left the senate, but Sen. Jim Merritt,
R-Indianapolis, the law's co-author and the current chair of the Senate
Utilities Committee, said that he would monitor the situation and propose
solutions if any became necessary.
"One of the reasons we did what we did was because of
the federal government’s treatment of this industry," Merritt told
IndyStar. "We all want solar in the state, and we need to give it as
much of a push as possible, and we will react should this change the
circumstances."
Merritt said that the upcoming interim study term would
likely be the earliest that the general assembly could take up the issue.
The tariff imposed by the Trump administration is not as
steep as what was originally requested in May 2017, but just the suggestion of
a tax on imported solar panels caused
a slight rush to market in the U.S., according to GTM Research.
It is unclear the full extent of the impact the new tariff
would have on the solar installation industry, but it is likely that the
decision will kill some jobs, according to analysts. The SEIA estimates that
the tariff will cost the industry 23,000 jobs over the next year.
"In a state like Indiana, our jobs in solar are
overwhelmingly in the installation arena," said Jesse Kharbanda, executive
director of the Hoosier Environmental Council. "I think, in
general, this is policy that is hurting the very people that the Trump administration
had pledged to help."
The solar market as a whole could also take a hit. GTM
Research estimates that the tariffs could curb solar installations in the U.S.
by 11 percent over the next few years.
That reduction could slow adoption of the renewable energy
technology, which could stall efforts for individuals, organizations and
governments who are trying to move away from carbon-producing sources of
energy.
"These tariffs will hamper those efforts by increasing
the cost of solar energy. That makes no sense, especially when you add the net
job losses into the conversation, said Kerwin Olson, executive director of
Citizens Action Coalition.
"This tariff is bad economic policy, and bad
environmental policy. It’s a lose-lose."
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