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The European Commission has given China a last chance to act on alleged dumping of cheap solar panels before it brings in punitive import tariffs.

It is bringing in an 11.8 per cent levy on 6 June, which will be ramped up to an average of 47.6 per cent on 6 August if Chinese companies fail to re-establish “fair pricing”. An investigation by the Commission estimated a fair sale price would be 88 per cent higher than at present.

China has not shown any signs of backing down, instead retaliating with its own anti-dumping investigation into EU wine imports.

EU Trade Commissioner Karel De Gucht insisted the response was balanced and justified, and would give “life-saving oxygen” to Europe’s solar panel manufacturers.

He said: “This staggered response allows a smooth transition for our markets to adapt – and it is a one-time offer to the Chinese side, providing a very clear incentive to negotiate. It provides a clear window of opportunity for negotiations, but the ball is now in China’s court. It is clear that if China does not provide a solution by August, then the higher tariffs will apply.”

The move is in defiance of the UK and other member states, who objected the tariffs would threaten more jobs in the installation industry than they would save in European manufacture.

The Solar Trade Association chief executive Paul Barwell said the phased approach was “encouraging” but “any form of duties is not good news”.

He added: “A two month reprieve at 11% duties, without catches, might allow the industry some breathing space. However, European delivery lead times are up to ten weeks, and will also be subject to the availability of stock.”