In the latest trade spat with China, America said it would impose tariffs on imports of Chinese solar panels because of alleged export subsidies.
On March 5, the European Commission ordered its member states to register imports of Chinese solar panels and their main components, an administrative step underscoring punitive duties to be applied retroactively if fault is found in the investigations.
By converting a five-storey "tong lau" -- an old Chinese building -- with solar panels, a turfed roof and energy efficient appliances, Khan also is keen to emphasize that his eco-friendly flat is as much about preserving the old and a sense of heritage as it is about being green.
Under the rules, Chinese companies are also not allowed to export solar panels below cost.
While Silicon Valley companies were working on the problem, silicon prices fell and Chinese companies like JA Solar, Suntech and Yingli Green Energy rapidly expanded production of conventional solar panels, supported by tens of billions of dollars in inexpensive credit from the Chinese government as well as other subsidies like cheap land.
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As the tariff causes prices to rise for solar panels, the losers extend well beyond just Chinese panel manufacturers.
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The Chinese government is spending vast sums of money to subsidize deployment of solar panels and wind turbines, and as a result China appears to be winning the race to dominate this growing sector.
Manufacturing of solar panels and related products is picking up as price pressures from Chinese solar manufacturers are felt by U.S. solar companies.
But over the past few years, the rapid expansion of low-cost Chinese manufacturers like Suntech, Yingli and Trina has sent the cost of conventional solar panels plummeting.
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In an interesting variation on this theme, last year construction giant KB Home struck a deal with a Chinese solar company, BYD, to build new, moderately-priced homes with solar panels already installed in Lancaster, California.
The stock market has also been a boon to many Chinese companies, which have jumped into the business of building everything from solar wafers to finished panels.
According to polysilicon producer Renewable Energy, the move by the Chinese government to set up preferential tariffs to boost cleaner energy sources could herald the shift in demand for solar panels from Europe to Asia and the U.S. Some optimistic estimates suggest that China may add as much as 7 GW this year, which is roughly equal the capacity added in Germany in 2011.
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