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  • Writer's pictureJaime Ventura Energy Consultant


Updated: Jul 12, 2023


The Welsh Not History,  IC vs High Tariff

The Welsh Not History: From the 19th century until the beginning of the 20th century, the Welsh school system under English command punished those children who were detected speaking Welsh, since the language imposed and permitted was English. The punishment consisted of placing a wooden sign with the letters WN (No to the Welsh language), at chest height of the child who was to be humiliated or punished.

Currently, although most nations are working to increase the use of renewable energy such as solar and promote global sustainability agreements, some still impose very high tariffs (a WN sign like the Welsh Not History) on the importation of solar panels, which makes solar adoption much more expensive. In many cases, the highest tariffs apply to products from countries that can produce them more efficiently and at more competitive prices. This can limit the availability of affordable technology for countries and communities seeking to adopt renewable energy and reduce their carbon footprint, and result in a "plug one hole by another" effect, in which solutions offered to consumers, by not neither be efficient nor profitable in the long term, decrease to achieve sustainability more quickly.

All unnatural, tax, retaliatory, and punitive policies generate distortions, inefficiencies, costs, reparations, injustice, and decreases. So you have to look for forms of action that are fluid and natural. The adoption of open, transparent and inclusive trade policies can contribute to a further reduction in the costs of solar energy, the deployment of this technology and the creation of employment in the sector. Trade policies should reduce or eliminate tariffs on solar products, which act as a hidden tax. These range on average between 2.2% applied to solar cells and 10% for panels. Tariff reduction initiatives should be complemented with measures to remove the broader technological, economic, and regulatory obstacles that hinder the deployment of solar technology in countries that are least efficient at manufacturing them.

This is where the Integration Coefficient IC model can be beneficial. By integrating factories to create solar kits and reaping the benefits of reduced HS codes, some of the penalties (again the WN) imposed by countries trying to “protect” their own manufacturers can be avoided. This can help speed up the adoption of solar power and other renewable energy systems by making solutions more accessible. Rather than forcing inadequate solutions on the customer, as in the case of the Welsh Not, the IC model can provide a more efficient and sustainable solution for the renewable energy supply chain.

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