{"id":17086,"date":"2018-01-25T18:32:43","date_gmt":"2018-01-25T23:32:43","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=17086"},"modified":"2018-01-26T15:02:41","modified_gmt":"2018-01-26T20:02:41","slug":"trump-kills-solar-jobs-taxes-families-and-businesses-but-he-cant-kill-solar-competitiveness","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2018\/01\/25\/trump-kills-solar-jobs-taxes-families-and-businesses-but-he-cant-kill-solar-competitiveness\/","title":{"rendered":"Trump kills solar jobs, taxes families and businesses, but he can\u2019t kill solar competitiveness"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-17092 alignleft\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-300x300.jpg 300w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-50x50.jpg 50w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-768x768.jpg 768w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-1024x1024.jpg 1024w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2018\/01\/installingsolarpanel_shutterstock-123739609-RF-1-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>With President Trump\u2019s <a href=\"https:\/\/ustr.gov\/about-us\/policy-offices\/press-office\/press-releases\/2018\/january\/president-trump-approves-relief-us\">announcement<\/a> this week to slap a 30 percent tariff on imported solar cells and modules, the solar industry once again finds itself in the firing line, targeted by the political whims of elected officials.<\/p>\n<p>This political posturing has created uncertainty in the marketplace. In the last decade, solar has suffered from seven changes to the investment tax credit. And in the last few months, the industry got a double whammy of the <a href=\"https:\/\/www.utilitydive.com\/news\/updated-trump-approves-gop-tax-overhaul-bill\/513542\/\">BEAT tax<\/a> \u2013 which will negatively affect equity investments in solar development \u2013 and the <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2018\/01\/08\/fercs-rejection-of-does-pro-coal-and-nuclear-proposal-shows-evidence-can-still-trump-politics\/\">threat<\/a> from the Department of Energy\u2019s plan to prop up dirty coal while undermining solar. The tariff decision this week \u2013 a protectionist attempt by Trump to appeal to his anti-free trade base \u2013 is the latest assault on clean energy and a tax on American families, businesses, and utilities who want to go solar. Republicans once considered such actions a \u201c<a href=\"https:\/\/www.rollcall.com\/news\/politics\/ignoring-warnings-trump-slaps-tariffs-washing-machines\">tax on consumers<\/a>.\u201d<\/p>\n<p>Despite these attacks, solar is still booming. Solar Energy Industries Association (SEIA) <a href=\"https:\/\/www.seia.org\/news\/presidents-decision-solar-tariffs-loss-america\">reports<\/a> that in the last five years, the U.S. solar industry has attracted more than $100 billion in investment, realized year-over-year growth rates of 21 percent, and now employs more than 260,000 people. The tariff may slow the growth of solar, but it doesn\u2019t kill its competitiveness.<!--more--><\/p>\n<p>This most recent attack started last spring, when two floundering solar manufacturers petitioned the U.S International Trade Commission to take action against foreign competitors, claiming overseas rivals export products to America\u2019s solar market at prices they can\u2019t match. Ironically, Trump put aside \u201cAmerica First\u201d this week as he agreed with the two foreign-owned petitioners (SolarWorld Americas is a U.S. subsidiary of a Chinese company, while Suniva is owned by a German firm). Fortunately, the companies did not get the steep tariff they were hoping would help revive their bankrupt businesses, but the 30 percent tariff will still hurt the U.S. economy and our climate progress.<\/p>\n<p>[Tweet &#8220;Trump kills solar jobs, taxes families and businesses, but he can\u2019t kill solar competitiveness&#8221;]<\/p>\n<p><strong>Trump\u2019s tariff has many losers<\/strong><\/p>\n<p>American families, businesses, and utilities stand to lose from Trump\u2019s tariff, as it will increase solar installation costs. This tariff puts a 30 percent tax on solar cells and modules in the first year, which reduces by 5 percent per year over a four-year period. And though the first 2.5 GW of solar cells the U.S. imports <a href=\"https:\/\/www.forbes.com\/sites\/brighammccown\/2018\/01\/24\/trump-solar-decision-leave-almost-everyone-unhappy\/#6f0649c6160b\">each year<\/a> will be exempt from the tax, <a href=\"https:\/\/news.energysage.com\/measuring-the-cost-of-solar-power-dollars-per-watt-w-and-levelized-cost-of-energy-lcoe\/\">EnergySage Solar Marketplace<\/a> figures the tariff will increase the cost of a typical home solar installation by $500 to $1,000. Utilities and businesses will get hit harder because they are more sensitive to increases in panel costs, which make up a larger portion of overall project costs than in the residential segment.<\/p>\n<p>The U.S. is estimated to lose billions of investment dollars in solar development over the next four years. <a href=\"https:\/\/www.greentechmedia.com\/articles\/read\/tariffs-to-curb-solar-installations-by-11-through-2022#gs.TjX796o\">Greentech Media Research estimates<\/a> that solar demand will decrease by 7.6 GW in installed solar PV capacity between 2018 and 2022, which equates to the loss of 1.2 million homes powered by solar. This tariff will have a disproportionate impact on states with newly emerging solar markets, with southern states like Texas, Florida, North and South Carolina among the hardest hit by the tariffs.<\/p>\n<p>The reduced demand caused by Trump\u2019s tariff means climate progress will also take a hit. Without the tariff, the U.S. could have avoided between 7.4 million &#8211; 17.6 million metric tons of emissions, depending on whether natural gas or coal replaces the solar capacity, according to EDF\u2019s analysis. While this comprises only about 1 percent of U.S. power sector emissions, it\u2019s equivalent to the emissions of two to four coal plants. Couple this setback with the other recent attacks on clean energy and it\u2019s clear Trump\u2019s agenda is to obstruct climate progress.<\/p>\n<p>And Trump\u2019s solar tax will cause 23,000 people to lose their jobs this year, with tens of thousands each year after, according to the <a href=\"https:\/\/www.seia.org\/news\/presidents-decision-solar-tariffs-loss-america\">SEIA<\/a>. Worse yet, Trump\u2019s tariff will result in the opposite of what it intends. SEIA warns that this tariff will eliminate, not add to, American manufacturing jobs. Of the 38,000 jobs in solar manufacturing only 2,000 made cells and panels (the subject of this tariff case). This means that the 36,000 Americans who built metal racking systems, high-tech inverters, trackers, and other electrical components will see job losses. (By the way, the two foreign-owned companies that started all of this have not yet made any commitments to create more jobs as a result of Trump\u2019s tariff.)<\/p>\n<p>As for the creation of American solar manufacturing jobs, the Department of Energy <a href=\"http:\/\/thehill.com\/policy\/energy-environment\/370496-new-doe-competition-aims-to-jump-start-us-solar-manufacturing\">announced<\/a> yesterday a $3 million grant to \u201creassert American leadership in the solar marketplace.\u201d While $3 million is not nothing, it is a token gesture compared to what China is investing in solar. In 2017, the U.S. spent about <a href=\"https:\/\/energy.gov\/articles\/department-energy-announces-prize-competition-accelerate-us-based-solar-manufacturing\">$400 million<\/a>, while China spent <a href=\"https:\/\/www.greentechmedia.com\/articles\/read\/china-more-than-doubles-americas-clean-energy-investments-in-2017#gs.rA2A9YI\">$86.5 billion<\/a>. (China <a href=\"https:\/\/www.energyandcapital.com\/articles\/5-countries-with-the-most-invested-in-renewable-energy\/5928\">committed<\/a> $364 billion for all renewables by 2020 and nearly $780 billion by 2030.)\u00a0If Trump were serious about reinvigorating the solar manufacturing industry in the U.S., he should have put one hundred \u2013 maybe one thousand \u2013 times more investment into this effort.<\/p>\n<p>Finally, four years is a short window of opportunity to make manufacturing investments pay off. With <a href=\"https:\/\/www.pv-tech.org\/news\/reaction-to-trumps-30-solar-import-tariffs\">threats<\/a> from China, Mexico, and South Korea to file petitions with the\u00a0<a href=\"https:\/\/www.bloomberg.com\/quote\/0600603D:SW\">World Trade Organization<\/a>\u00a0against the U.S., market uncertainty already exists and is threatening the success of the tariff for the development of a meaningful domestic solar manufacturing industry. Mexico is even <a href=\"http:\/\/news.usa.tomato-timer.com\/news\/mexico-blasts-trumps-solar-panel-tariff\">seeking action<\/a> on provisions under the North American Free Trade Agreement (NAFTA). ClearView Energy Partners LLC and other analysts have <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-01-23\/world-s-solar-leaders-say-trump-s-tariffs-could-have-been-worse\">warned<\/a> that nations will establish their own trade barriers against the U.S. Even Senate Republicans are against Trump\u2019s tariff, as Sen. Roy Blunt (R-Mo.) made clear in his <a href=\"https:\/\/www.washingtonpost.com\/business\/economy\/gop-lawmakers-condemn-trumps-tariff-decision\/2018\/01\/24\/e01ee876-0139-11e8-8acf-ad2991367d9d_story.html?utm_term=.fee5cebcefd9\">comment<\/a> to the <em>The Washington Post<\/em>: \u201cI don\u2019t agree with it. I think it\u2019s a bad path to head down. The retaliatory tariff fight is never a good fight, and I generally think we need to be more positive about our trade opportunities.\u201d<\/p>\n<p><strong>The good news: Solar is still competitive<\/strong><\/p>\n<p>Even with Trump\u2019s tariff, GTM Research expects the industry to deploy more than 10 GW of solar installations in the U.S. this year, and 11.9 GW next year, with continuous growth through 2022.<\/p>\n<p>And many analysts are stating that overseas solar manufacturers will respond by increasing investments in research and development to improve solar panel efficiencies (the percentage of sunlight that can be converted into electrons) as well as manufacturing automation. In addition, these overseas manufacturers intend to accelerate their already aggressive cost-reduction roadmaps. The <a href=\"https:\/\/www.nrel.gov\/docs\/fy17osti\/68580.pdf\">National Renewable Energy Laboratory reports<\/a> that from 2016 to 2017, there was a 29 percent reduction in the cost of utility-scale solar panel systems. In an <a href=\"https:\/\/www.rmi.org\/about\/news-and-press\/2018-solar-cost-reductions-offset-tariffs-panel-prices\/\">announcement<\/a> released on Tuesday, participants at a Rocky Mountain Institute event identified an opportunity to nearly halve installed costs with a 20 percent decrease in 2018 alone. This could offset the impacts of Trump\u2019s tariff and avoid the anticipated slowdown currently projected.<\/p>\n<p>In addition, a quick run of the University of Texas <a href=\"http:\/\/calculators.energy.utexas.edu\/lcoe_map\/#\/county\/tech\">Levelized Cost of Electricity (LCOE) calculator<\/a> \u2013 keeping all their starting assumptions except for the change in solar costs \u2013 indicates that even with the additional costs imposed by Trump\u2019s tariff, the LCOE of solar beats out coal in all U.S. counties.<\/p>\n<p>Despite the immediate-term headwinds inflicted by Trump, all signs point to clean, abundant solar power increasingly becoming the energy source of choice for families, businesses, and utilities across the globe because solar is competitive.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With President Trump\u2019s announcement this week to slap a 30 percent tariff on imported solar cells and modules, the solar industry once again finds itself in the firing line, targeted by the political whims of elected officials. This political posturing has created uncertainty in the marketplace. In the last decade, solar has suffered from seven &#8230;<\/p>\n","protected":false},"author":69165,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996,53091,177,203],"tags":[],"coauthors":[],"class_list":["post-17086","post","type-post","status-publish","format-standard","hentry","category-smart-power","category-energy-financing","category-renewable-energy","category-solar-energy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trump kills solar jobs, taxes families and businesses, but he can\u2019t kill solar competitiveness - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2018\/01\/25\/trump-kills-solar-jobs-taxes-families-and-businesses-but-he-cant-kill-solar-competitiveness\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump kills solar jobs, taxes families and businesses, but he can\u2019t kill solar competitiveness - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"With President Trump\u2019s announcement this week to slap a 30 percent tariff on imported solar cells and modules, the solar industry once again finds itself in the firing line, targeted by the political whims of elected officials. 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