4. SOLAR:

Trade group tightens belt in face of trade dispute, turbulent market

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Speaking at the 2012 Solar Power International gathering in Orlando, Fla., Solar Energy Industries Association President Rhone Resch invoked Charles Dickens' "A Tale of Two Cities" to describe the state of the industry: "the best of times" and "the worst of times."

So the recent layoffs at SEIA can be considered a sign of the times.

Since February, SEIA has laid off eight employees, with six losing jobs late last month. Three other positions were eliminated through attrition.

The cuts represent the most severe belt tightening for an industry association that, until the beginning of this year, had seen a rapid expansion.

Since 1974, SEIA has served the national trade association for the U.S. solar industry focusing on federal issues. By early 2008, the SEIA staff list had eight names -- a small group fitting a mission that was then focused mainly on one issue, the renewal of the investment tax credit.

In the wake of that extension and amid a growing market, SEIA looked to expand its mission to include regulatory policy, communication on behalf of the industry and providing research and data.

Early this year, SEIA had 45 employees.

Growth at SEIA reflected what was happening in the solar industry.

After experiencing its best year to date in 2009 for new installations, solar energy capacity in the United States doubled in 2010. In 2011, private-sector investment spurred by government incentives netted a 109 percent increase in new photovoltaic capacity nationwide.

Installations in 2011 accounted for 1,855 megawatts of new electricity, a total that shattered 2010's record of 887 MW.

Data released by GTM Research for the trade group earlier this year estimated that the industry's total market value last year surpassed $8.4 billion, making it the second-largest U.S. renewable energy sector, behind wind.

SEIA's membership jumped from just under 800 in early 2009 to about 1,000 today (Greenwire, March 14).

But the U.S. solar industry faced economic and political clouds as it moved into 2012.

A key Treasury Department solar subsidy expired at the end of 2011, the Solyndra scandal dominated political discussions about solar, demand growth lagged in several key sectors, and the industry braced for a possible trade war with China over cheap solar imports.

Still, SEIA entered 2012 in expansion mode.

In early January, the group merged with the Solar Alliance -- a group created in 2007 to work with state legislatures, utilities and regulators to promote wider consumer use of solar technology -- to present a unified voice for the industry on state and national issues (Greenwire, Jan 3).

Then came belt tightening. Minutes from a February meeting of SEIA's Market Research Committee posted on the trade group's website note that between January and February, the association decided to cut $55,000 from its research budget.

The cuts "will further impact the ability to produce external studies," the minutes state.

It turns out, February was also when the first layoffs took place, with the group cutting two positions.

SEIA spokeswoman Monique Hanis said staff cuts that have taken place this year were across the board.

"The budget adjustments were basically required and reflected the current business cycle responding to some of the same competitive forces that the industry is seeing," Hanis said.

She noted that despite some of the consolidations in the industry, as a whole, SEIA has added members.