The rise of the use of solar energy in the United States has recently been noticed by Chinese officials, who have responded by creating a new rule that poses a threat to the U.S. solar ambitions. In efforts to protect their own interests and those of their country, Chinese manufacturers are advocating a new rule that could limit solar installations within the U.S. This marks an immense obstacle for the growth of the relatively young American solar industry.

What Is the New China Rule?

The new rule issued by the Chinese government will require additional inspections of solar power systems within the United States before they can be installed. Companies that are working in the solar industry have been informed that their products must be tested for safety and quality assurance in China before they can be installed. This new rule comes with a lengthy list of prerequisites and ultimately adds to the already hindering costs of solar energy.

Energy experts and trade industry individuals in the United States view this new rule as an unfair form of trade. The Chinese rule is seen as an effort to protect China’s domestic industry by introducing burdensome new regulations that target the U.S. One solar company that has been affected by the new rule, SolarCity, said, “This new development is just a stepping stone to further protectionism in the form of increased trade barriers.”

What Are the Impacts of the Rule?

The impact of the new rule on U.S. solar ambitions cannot be understated. When solar products are imported from China, the amount of testing and data that the Chinese government requires is often time-consuming and expensive. This can mean that the projects that depend on these products must wait for months and sometimes years for the inspection process to be completed.

Additionally, the increasing cost of the products from China further adds to this burden. As the demand for solar energy increases, the cost of solar materials from the Chinese government is also rising. Solar power used to be relatively inexpensive to install, and the increased cost due to the new rule is putting the industry at risk of becoming less competitive than it was previously.

Another major impact of the Chinese rule is that it has placed the U.S. solar industry at a disadvantage in global markets. While the U.S. has been an instrumental leader in the development of solar energy, this new rule has limited their access to markets that rely on solar power, including in Europe and Africa. Many international customers are reluctant to buy solar products from the U.S. due to the stringent requirements put in place by the Chinese government. They are now turning to foreign suppliers who are compliant with the China rule, allowing them to avoid the costly requirements that the U.S. has been subjected to.

What Can the U.S. Solar Industry Do?

The U.S. solar industry must find a way to adapt to the new Chinese rule in order to remain competitive in the global market. There are several steps that the industry can take to ensure that the U.S. does not lose out on the opportunity to benefit from the growth of the industry.

  1. Invest in Research and Development: Research and development are key components of the solar industry, and the U.S. should be investing in it to ensure that their products and technology are superior to those in the international market.

  2. Seek Alternatives: Companies should be evaluating their supply chains and exploring options for importing materials from alternative sources that may not be subject to the Chinese rule.

  3. Call for Changes: Companies should be publically advocating for changes to the rule, as well as highlighting how it is unfair to the U.S. solar industry.

  4. Adapt to the Rule: If the Chinese rule cannot be changed, companies should focus on creating processes that are compliant with its requirements.

The new Chinese rule regarding solar installations in the U.S. is an immense obstacle for the solar industry and its growth. The cost and other barriers imposed by the Chinese government are posing a risk to the industry’s global competitiveness. U.S. solar companies must find ways to adapt to this new rule and continue to be a leader within the industry. Investing in research and development, seeking alternative importing sources, advocating for changes, and adapting to the rule are all important steps that the industry can take to ensure continued success in this fast-growing sector.