Solar panels at crossroads

The state’s largest panel manufacturer, whose business has suffered in the face of cheaper competition, has joined the chorus of panel makers across the country in demanding that tariffs be placed on Chinese imports.

North Jersey project developers and installers, while sympathetic to the manufacturers’ plight, say the cheaper Chinese panels have made solar systems more affordable — up to 25 percent cheaper.

At the heart of the debate is the question of how best to create jobs in a sector that has been touted by President Obama and many others as a potential sunrise industry for the future.

"I’m conflicted," said Kurt Holmes, owner of Englewood-based Renewable Energy Associates, which develops and sells solar energy projects.

"As a citizen, I would like to see manufacturing done here at home," he said, reflecting the view of several installers. "However, I’ve got to pay the lowest price. The fact that Chinese manufacturers are driving down the price is good for the industry."

Manufacturers say protection from Chinese imports would help create jobs in the U.S. and stop them from going overseas. But some installers and project developers say Chinese imports help bring down project costs, spurring the creation of new businesses and sales, construction and installation jobs.

Tom Ferraro, owner of Solar & More, a Pompton Plains solar installation company, said he supports the manufacturers, but low panel prices help boost his year-old business, which employs four people including himself. He opened a showroom in April and plans to open two more next spring.

"Obviously, when you are selling something that’s thousands of dollars, the lower the price the easier it is to sell," he said. "I get these stores open and I’m going to need to hire service people, office and support staff."

On Friday, the U.S. International Trade Commission voted unanimously in a preliminary ruling on the petition by manufacturers calling for anti-dumping and countervailing duties. The commission will now proceed with a full investigation.

The manufacturers accuse Chinese manufacturers of "dumping" solar panels in the U.S., selling them for less than the production and shipping costs with the help of Chinese government subsidies. The complaint asks the U.S. to impose tariffs on imported Chinese panels, which could significantly raise the price.

The dispute comes at a volatile time for the solar industry, which has been shaken in recent months by the bankruptcies of Fremont, Calif.-based Solyndra, a large solar panel manufacturer that received $500 million in federal subsidies, and two other large panel makers, as low-priced Chinese imports flooded the market.

Solar-panel prices have fallen dramatically in the past year in large part due to a worldwide excess in panel manufacturing capacity, some of it the result of a collapse in European demand. New Jersey installers say panel prices have fallen 30 percent in the past year.