The prelude to a potential solar trade war playing out in the European Union will be closely observed locally due to a push in Australia by some to impose tariffs on Chinese solar panels.
According to an article on European Voice, Germany’s economy minister, Philipp Rösler, has warned the European Commission that imposing punitive import tariffs on solar panels from China would be a “grave mistake” as it could end in damage to bilateral trade and retaliation.
The European Commission is wanting to impose an ‘anti-dumping’ tax of between 37.2% and 67.9%; designed to assist European solar manufacturers – but it may not play out that way says the Alliance For Affordable Solar Energy (AFASE). In fact, it could have global implications; pushing up the price of solar for all.
Another European Voice article says China has already indicated a willingness to retaliate through legal action should the tax come to pass.
“The kind of in-fighting that we are seeing [in the European industry] is bad for business in general and has substantial trickle-down effects on consumers,” says Graham Watson, a member of the European Parliament’s delegation to China.
Australia’s only solar panel manufacturer is calling on the Australian government to join ‘anti-dumping’ action; but with China a major Australian trading partner, it would be a risky business with the potential to backfire very badly.
Aside from wider implications of an AU/China trade war; price has often been a barrier to Australian households going solar, a barrier that has been broken down in recent years due to intense competition and increased panel production levels pushing down the cost of installing solar panels. An increase in prices has the potential to dampen uptake; slowing down Australia’s move towards a clean energy future and preventing some households from slashing their power bills.
