The U.S. believes China is dumping solar panels at below-market prices in America and has hit back with a penalty of 31 percent. That tariff is surprisingly steep and many in China are not reacting well. Could they backfire?

The solar sector in the U.S. did very well in 2011, installing nearly twice as much capacity as the previous year -- a record. And the industry still expects to have an even better 2012.

Solar stocks have been plunging of late and the world's biggest solar market is tapping the brakes on sun power. Looks like a cloudy forecast ahead.

A major government incentive for solar power expired this week, but now bigger companies may benefit from a tax break.