EDITORIAL: Solar industry split on proposal to levy tariffs on imported cells

Protectionism and corporate welfare are two sides of the same coin. That’s why neither side in the solar tariff debate may claim the high ground in a dispute that carries major ramifications for Nevada.

On Tuesday, federal trade officials recommended that the Trump administration impose import duties on solar cells, the part of a solar panel that converts sunlight to electricity. The move comes in response to complaints from two U.S. manufacturers who say they can’t compete with low-cost Asian imports and will be forced to eliminate thousands of American jobs without federal help.

But neither Suniva nor Solar World got everything it wanted from the U.S. International Trade Commission. The four members of the panel made a number of suggestions — including import quotas — but didn’t recommend duties as punitive as the companies had sought.

The issue now goes to the White House, which has until January to choose a course of action.

Watching closely were the companies that install solar panels for homeowners and businesses. They argue that the tariffs will drive up prices for consumers and make it more difficult for the industry to grow. Like manufacturers, they also raise the specter of large job losses in their own field.

But their opposition to government intervention is highly selective. The solar installation business is itself a creation of market distortions and tax subsidies designed to prop up the industry in the name of promoting green energy.

Recall that the businesses virtually disappeared from Nevada until lawmakers last session agreed to force utilities to pay solar customers the more generous retail rate for their surplus power. That gift — along with a lavish federal tax credit — made it worthwhile for solar panel installers to again peddle their wares.

In the aftermath of the trade panel’s decision, both sides expressed disappointment. The New York Times reported that Suniva called the recommendations “disappointing” and urged the president to impose stronger penalties on imports “to save American manufacturing.” Meanwhile, the Solar Energy Industries Association, a trade group representing panel installers and others, issued a statement expressing appreciation that the commission didn’t go as far as it could have, but worrying that tariffs remain “intensely harmful,” the Wall Street Journal noted.

The solar installers are correct: Protectionist duties are bad for U.S. consumers and will drive up prices. The president should take no action here. But at the same time, special-interest handouts in the form of net metering or other subsidies also carry a price for consumers and taxpayers.

It’s hard to feel much sympathy for either camp. Fact is, it’s long past time for this industry to stop the panhandling and learn to navigate the marketplace without government assistance.