Why is solar making such dramatic progress in Germany, Italy, and Spain? Because Chinese companies are flooding the global market with cheap PV.
Why is solar grid parity (the point at which PV is competitive with retail electric prices, without subsidies) approaching so much faster than predicted? Because Chinese companies are flooding the global market with cheap PV.
That’s the story of solar today, for better or worse: cheap Chinese PV. The question is, what should U.S. policymakers do about it? That turns out to be a tough call.
One school of thought says that the U.S. should adopt a mercantilist approach and fight back against what it deems unfair Chinese competition. America should protect and grow its own solar manufacturing industry.
...One way to implement this is with trade tariffs, which is what the Obama administration did last month. Another way is by subsidizing U.S. companies.
What do you think the U.S. should do about Chinese solar?
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