The Solar Battle

The four biggest solar markets, China, the USA, Europe and India, three of them the largest panel and BoS Equipment manufacturer regions are fighting tough for leading the global solar market.

China and the U.S. take several months accusing each other of illegal business practices. Now America also extends its fight to India. India has launched an ambitious solar programme known worldwide as the JNNSM the Jawaharlal Nehru National Solar Mission. It plans to install 20,000 MW of solar energy by the year 2022. One of the points mentioned in this programme, that was launched by the Indian central government in 2010,  includes a "domestic content" clause. That means that India requires solar power developers to buy and use domestic solar cells and solar modules in order to benefit from participating in the Jawaharlal Nehru programme and to enter into contracts under the JNNSM programme or with the National Power Company.

According to the United States, the benefits for solar power developers, contingent on their purchase and use of domestic solar cells and solar modules, would include subsidies through guaranteed, long-term electricity rates.

Now the United States notified the WTO Secretariat of a request for consultations with India on certain measures of India relating to domestic content requirements under the Jawaharlal Nehru National Solar Mission (NSM) for solar cells and solar modules.

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

After losing market influence during the last years American solar manufacturers have started different initiatives. The Coalition for American Solar Manufacturing (CASM) is a consortium of seven U.S. domestic producers of crystalline silicon solar technology, and  is one of the main movements against Chinese solar panels import.

The coalition’s central purpose is to hold China accountable to U.S. and international trade law by filing antidumping and countervailing duty trade remedy petitions. The coalition is led by  German SolarWorld, the largest U.S. solar manufacturer.

CASM represents a still-growing coalition representing more than 230 U.S. solar installers, integrators and producers employing more than 18,000 American workers. The National Renewable Energy Laboratories, according to CASM, has concluded that it costs more to produce and ship solar technology for the U.S. market from China than from the United States.

In Europe the other big player they expect that regulators may impose preliminary anti-dumping duties on Chinese solar products between may and june 2013.

In the meantime the Chinese companies refute all accusations against them and are also joining forces to defend themselves.

The request for consultations with India is not a filing for dumping practices but an attempt to open one of the biggest markets for massive solar business.

Now the industry is awaiting the Indian reaction.