In a long-expected move, the Trump administration this week approved a recommendation to impose a 30 percent tariff on imported solar panels. They argue that low-cost imports from countries like China have hurt US panel manufacturers. But many in the US solar industry have come out against the decision. CGTN's Hendrik Sybrandy reports from the state of Colorado.
In a place where the sun shines 300 days a year, EcoMark Solar is one of Colorado's largest residential solar energy equipment suppliers.
ALEX VALDEZ ECOMARK SOLAR CEO "We do anywhere from 500 to 1,000 installs a year. This has been a really good year for us."
ALEX VALDEZ ECOMARK SOLAR CEO "More and more people are choosing to go solar and own their energy."
Alex Valdez founded EcoMark Solar a decade ago. He keeps his product competitive by importing his panels from Asia.
ALEX VALDEZ ECOMARK SOLAR CEO "Like most things electronic in the United States, they're mostly made in China."
For some U.S. solar panel manufacturers, that's a real problem. They asked the U.S. International Trade Commission to recommend steep tariffs on the relatively cheap imported panels. One of those companies is Suniva, which ironically is Chinese majority-owned. It said in a statement: "The crisis caused by foreign market overcapacity now facing the U.S. solar industry is so extreme, the financial losses so great that, to be effective, any remedy must be bold."
IAN LANGE ASST. PROF., COLORADO SCHOOL OF MINES "A higher price for panels, then less people will be purchasing them is sort of the general idea. Just a price up, quantity down."
HENDRIK SYBRANDY DENVER "Thereby allowing U.S. solar panel manufacturers to regain their footing. The Trump administration agreed with that reasoning in announcing a 30 percent tariff on imported panels. But many U.S. solar installers say the move is counter-productive."
According to one report, more than 260-thousand Americans now work in the solar industry. Some argue more expensive panels will dampen business, hurting these folks most of all.
TAYLOR HENDERSON COLORADO SOLAR ENERGY INDUSTRIES ASSOCIATION "Here in Colorado, we have a workforce of 8,000 people. We expect that the tariff could impact up to a third of those jobs."
ALEX VALDEZ ECOMARK SOLAR CEO "It adds cost in so it's not good for the consumer."
Valdez thinks his costs could go up 10 percent. The head of Auric Solar, which saw a 50 percent increase in revenues in 2017, believes the new tariff will have a ripple effect through the industry.
JESS PHILLIPS CEO, AURIC SOLAR "We think this is closer to like a four or five percent impact, and at least for our company, we feel like that's something that we can absorb based on the growth we had."
IAN LANGE ASST. PROF., COLORADO SCHOOL OF MINES "Most people are expecting to have a slight dent in the growth of the solar market but not a lot."
Valdez, who employs 125 people, doesn't expect layoffs, but does plan to be more cautious about hiring in the future. At a time when the cost of solar energy has come way down, he says tariffs send the wrong signal.
ALEX VALDEZ ECOMARK SOLAR CEO "When our government is in a sense getting in the way of the people's desire to own their energy and to change the paradigm of how people get their energy, it's really not good for anybody."
Larger utility-scale projects are expected to bear the brunt of the tariff, which will drop gradually over the next four years. It takes effect February 6th. Hendrik Sybrandy, CGTN, Denver.