Solar industry warns punitive duties on Chinese panels will hurt market

Punitive import tariffs on solar panels from China will damage the UK installation market, industry representatives have warned.

The European Commission has passed plans to impose duties averaging 47 per cent, in a bid to protect European solar panel manufacturers. That will push up prices across the board, critics say.

The move, backed by EU trade chief Karel De Gucht, has been criticised by solar installers within Europe as well as Chinese trade representatives.

Paul Barwell, CEO of the Solar Trade Association, said: “These duties, if imposed, will damage the UK solar market, particularly the large scale ground-mount sector. It seems absurd that Commissioner De Gucht is supporting these proposals, when the duties will actually result in a net reduction in EU solar jobs, restrict the growth of the solar market, and damage Europe’s chances of meeting its 2020 renewable targets.”

Southern England-based Orta Solar is considering postponing £180 million of investment in the sector. Managing director Nick Pascoe said he was “tremendously disappointed” by the move. “We invest many £millions in surveying, planning, legal, financial and technical design work typically twelve months prior to constructing these projects and as of today we no longer know whether it will be economically viable to construct UK commercial scale Solar farms later in 2013 and beyond. How can we possibly continue to invest?”

Stephen Hill, energy expert at law firm Eversheds, said: “The consequence of a tariff on panels will either be an increase in subsidy (paid for by the consumer) or the slow demise of the solar industry.”

Trade specialists from all 27 member states will be consulted on 15 May and are expected to back the decision.