China Tries to Fix Solar Panel Problems with Mergers, Reduced Gov. Support
December 24, 2012 8:11 AM
comment(s) - last by
Beijing's solar problems stem from rapid expansion over the past decade and issues with the U.S. and Europe
In response to troubles with its
solar panel manufacturing
, China is trying to get producers to merge.
Beijing, in particular, is facing problems with its solar panel industry and plans to fix it by reducing government support for the industry, encouraging mergers and blocking local leaders from supporting domestic producers.
Beijing's solar problems stem from rapid expansion over the past decade. It offered grants and low-cost loans, which led to many producers crowding the market. The end result was too many producers that flooded the market with supplies and were forced to lower prices in order to compete. The industry is now about $17.5 billion in debt.
Further complicating Beijing's solar issues is conflict with both the U.S. and Europe. Last month, a U.S. trade panel supported tariffs as high as 250 percent on imports of sola panels from China. This occurred after it was discovered that Beijing was subsidizing imports in an inappropriate way and affecting jobs abroad.
The European Union also started investigating complaints that China was subsidizing solar panel exports improperly and hurting both European producers and jobs.
Of course, China denied doing any of the above.
China has involved itself in many solar projects over the years, such as
to achieve 10 percent of its energy production from renewable resources by 2010, reaching 15 percent by 2020 through the use of wind, hydro, biomass and
China Energy Conservation and Environmental Group's (CECEP)
6.68 megawatt solar station
for cheap and efficient growing.
Solar panel companies haven't had an easy time in the U.S., either. Back in September 2011,
Silicon Valley-based solar panel company
Solyndra filed for bankruptcy
after receiving a $535 million government loan in 2009.
Reports stated that the White House pushed the loan ahead despite warnings about the viability of Solyndra in order to meet political deadlines
In October of this year,
, which is a Boston-based company that develops solar inverters, filed for Chapter 11 bankruptcy protection as a result of the poor state of the solar power industry as well as financial earnings
This article is over a month old, voting and posting comments is disabled
RE: makes no sense
12/25/2012 6:44:47 AM
Indeed they devalue their currency, afterall, they've got it pegged to the US dollar, and it has lost 96% of it's purchasing power since 1913.
I'll ask you 1 thing: Why isn't there a level playing field now? Both the US and China subsidize their solar panel companies. Both of you.
I know the awnser to the question though, because China has won that little competition, purely through competing in the market (china went for mass-producing expensive tech to bring the price down, the US went for thin film to avoid the problem, china won and prices dropped tenfold). So since the US is losing, it must not be a level playing field.
You do realise that's one of the reasons the rest of the world really hates the US right? Because you don't consider things fair, even or just if you're not winning?
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
Solar Company Satcon Technology Files for Bankruptcy
October 18, 2012, 12:52 AM
$500 Million Wasted on Bankrupt Solar Panel Company; White House was Warned
September 14, 2011, 4:22 PM
China's Solar Greenhouses Allow Cheap, Efficient Growing in Winter
March 20, 2011, 7:01 PM
China Builds Huge 6.7 MW Solar Power Installation Next to High-Speed Rail
July 22, 2010, 7:20 AM
Chinese Government Commits to World's Largest Solar Power Project
September 9, 2009, 8:32 AM
Creationists are Mad About Google Doodle Depicting Evolution
November 24, 2015, 8:48 PM
DHS and TSA: Whoops, We Missed That 73 Airport Employees May be Terrorists
November 19, 2015, 2:16 PM
Star Wars Spinoff Film "Rogue One", Theme Park Attractions Announced
August 17, 2015, 12:20 PM
SpaceX Falcon 9's Seventh Supply Mission to ISS Ends w/ Fiery Stage 1 Explosion
June 28, 2015, 1:10 PM
Cool Science Video: Glowing Millipede Prowls the Nevada Desert
May 18, 2015, 12:00 PM
Newly Discovered Costa Rican Glass Frog is Kermit's Doppelgänger
April 22, 2015, 11:26 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information