China gives tax boost to distributed PV power generation Read

Chinese tax authorities will in July introduce measures designed to ease the tax burden on distributed PV power generation.

The government is seeking ways to promote distributed PV power generation projects, and from July 1 will ask all buyers of distributed PV power – which are mainly companies owned by the State Grid Corporation of China – to invoice power generators.

This simplified purchase procedure lessens the tax burden on all parties, making power transactions easier and, in most cases, less expensive. The decision by the State Administration of Taxation is intended to boost the installation of distributed PV power projects by stripping away the often-arcane taxation laws that have been known to cripple development in the sector.

Currently, most producers of distributed power are non-enterprise entities and individuals that have traditionally experienced such difficulties with the taxation process.

A further change sees electric power companies permitted to collect value-added taxes from PV power producers on behalf of the authorities whenever monthly revenues exceed 20,000 yuan ($3,252).

China's distributed solar power sector is a growing portion of the country’s PV industry. With 800 MW added last year, the distributed PV sector of China now accounts for 3.1 GW, with the majority of projects adopted by hospitals, schools, communities and government offices that are permitted to sell any excess electricity they have generated after self consumption.

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US adds new trade tariffs in China anti-subsidy case

 The US Department of Commerce has announced preliminary anti-subsidy rates of up to 35% for Chinese solar manufacturers.

At the hearing on Tuesday Wuxi Suntech was hit with rates of 35.21%, Trina Solar with 18.56% and all others with 26.89%.

The preliminary duties have been imposed following a petition from manufacturer SolarWorld maintaining that Chinese manufacturers have been evading US duties first introduced in late 2012 by using manufacturers in other countries to produce cells for assembly into modules in China.

For now the preliminary ruling would seem to give SolarWorld what it had asked for. The DOC document states: “The merchandise covered by this investigation is crystalline silicon photovoltaic cells, and modules, laminates and/or panels consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including building integrated materials.

“For purposes of this investigation, subject merchandise also includes modules, laminates and/or panels assembled in the subject country consisting of crystalline silicon photovoltaic cells that are completed or partially manufactured within a customs territory other than that subject country, using ingots that are manufactured in the subject country, wafers that are manufactured in the subject country, or cells where the manufacturing process begins in the subject country and is completed in a non-subject country.”

However, the DOC said it had not yet decided if the scope of products covered by the preliminary ruling will remain the same in its eventual duty order, due to be decided later this year.

Richard Weiner, a partner at law firm Sidley Austin, who is representing the Chinese manufacturers, said: "A critical element of this preliminary ruling is that the commerce department expressly declined to rule at this point on the issue of scope. It thus remains to be determined what products may be covered by any eventual duty order."

The DoC will make a further preliminary decision on 25 July on allegations of dumping of Chinese products in the US.

The US arm of SolarWorld, welcomed the ruling. “Today is a strong win for the US solar industry,” said Mukesh Dulani, president of SolarWorld Industries America. “We look forward to the end of illegal Chinese government intervention in the US solar market, and we applaud Commerce for its work that supports fair trade.”

But the Coalition for Affordable Solar Energy, which has opposed SolarWorld’s action, said it was “deeply disappointed” by the decision.

“The ruling is a major setback for the entire U.S. solar industry because it will immediately increase the price of solar power and cost American jobs in one of fastest-growing sectors of the U.S. economy,” a CASE statement said.

“By accepting SolarWorld’s request to expand the scope of the solar dispute, although they are continuing to entertain scope comments, the Department of Commerce is disregarding decades of legal precedent that define scope by applying the ‘country of origin’ and ‘substantial transformation’ trade rules. The use of SolarWorld’s proposed scope is also fundamentally inconsistent with the department’s own previous ‘scope’ determination in the 2012 solar cell dispute.

“Today’s announcement is just the first determination in a legal process which is set to drag on throughout this fall, taking its toll on the industry with every step. At a time when the U.S. solar industry is primed to continue its record-breaking growth and began 2014 recording the second largest quarter for solar installations in history, US solar businesses now find themselves collateral damage to litigation which is increasing module costs and freezing future investment through pricing uncertainty.

“This is a global dispute that will not be resolved through litigation alone. The best path forward continues to be a negotiated settlement between the US and Chinese governments to end this dispute and create the conditions for growth. But to achieve this, SolarWorld must come to the table and work with the industry to find a settlement that benefits the entire global supply chain. We ask the White House to help by convening the parties for true negotiations, and we urge SolarWorld to make its conditions known and join the rest of the US industry in support of the Solar Energy Industries Association (SEIA) proposal.”

The SEIA has been working on a negotiated settlement to the ongoing trade differences between the US and China, but SolarWorld has so far refused to take part in any discussions.

PV Tech will be reporting further reaction later today.

The Department of Commerce’s ruling document can be seen in full below: Solar Products US Department of Commerce Anti-subsidy Prelim results

allegations against Chinese PV firms threaten EU price deal

 Chinese solar companies are violating a settlement between the European Commission and Chinese government by selling products in the EU below a minimum agreed price, it has been alleged.

European solar representative body, EU ProSun, said today it had submitted over 1,000 pages of documentation to the EC’s trade directorate detailing apparent proposals by Chinese manufacturers to sell at below agreed prices.

Last year, Chinese companies avoided paying duties on imports into the EU by agreeing to sell their products at prices no lower than a minimum price, which at the time was set at €0.56/watt.

ProSun, set up by German PV manufacturer, SolarWorld, and the chief agitator behind the claims against Chinese manufacturers that led to the original EU inquiry, has always contested the agreement and now maintains that Chinese companies are “neither paying duties, nor observing the minimum price agreement”.

"EU trade rules are being systematically violated by Chinese manufacturers,” said Milan Nitzschke, president of EU ProSun and also vice president of SolarWorld.

“Not one Chinese manufacturer seems to follow the agreed minimum prices for imports into the EU. Dumped Chinese solar products continue to flood the EU market, destroying European industry and jobs. The commission must act fast to stop these violations and implement sanctions."

A statement released today by EU ProSun does not name any specific companies, but details 1,500 instances of Chinese firms allegedly seeking to circumvent the rules.

“Chinese tricks range from kickback payments camouflaged as ‘marketing grants’, to false product shipments massively under-declaring the quantities actually imported into the EU. It is like a Chinese fish market – anyone who thinks the price is not low enough simply gets another crate of solar modules for free!" Nitzschke said.

EU ProSun also alleges that the “majority” of Chinese companies use “shady middlemen” in deals, who work as a “buffer” between the Chinese companies and the European authorities.

ProSun said the whole price undertaking would now need to be reviewed in the light of its allegations.

"The minimum price agreement that the European Commission negotiated with China is unworkable. There is still no end in sight for Chinese dumping and the EU must impose duties across the board in the face of such illegal and flagrant trade violations," Nitzschke said.

A spokesman for the commission told the Wall Street Journal the evidence would be scrutinised and could lead to the withdrawal of the agreement.

The ProSun allegations come only a day after the US government announced new preliminary anti-subsidy duties on Chinese solar imports in America. The ruling was made following a petition by the US of international manufacturer SolarWorld.

PV Tech will report further detail of this story as it emerges.