Hello there, solar enthusiasts! As your trusted solar expert, let’s dive into some critical aspects of the solar industry shaking up in the U.S. Currently, our country is witnessing some remarkable progress in urging solar companies to reshape their manufacturing presence on American soil. The U.S. innovation boom paved the way for solar technology, and it’s only fitting we reclaim control over this all-important sector.
Two years ago, our government embarked on an initiative to bring back solar manufacturing. How? By creating practical incentives in the Inflation Reduction Act (IRA) – a strategy aimed at reshoring manufacturing of solar, batteries, and wind technology. Here’s where it got a little tricky: Chinese companies have found loopholes allowing them to maintain a supply chain monopoly while enjoying these incentives. Fortunately, the recently introduced American Tax Dollars for American Solar Manufacturing Act is striving to level the playing field.
As we all embark on the journey of adopting solar panels for our homes, it’s important to understand that sourcing them responsibly matters. Across the globe, nearly all solar panel production and an estimated 99% of the fundamental wafer manufacturing occur in China-controlled companies. This reality presents a unique challenge for us as we push towards clean energy and, importantly, energy independence.
Practices in the solar industry often mirror those in other sectors. For instance, if you recall OPEC’s influence on oil prices, China is currently exercising a similar strategy with solar pricing. It’s become evident that we’re observing the lowest solar prices in history, a tactic designed to hamstring budding American solar companies. A glance at Europe reveals a sobering realisation – nearly all their solar manufacturers have fallen due to below-market Chinese products flooding the market.
The key to a robust U.S. solar supply chain lies in strong government support. Businesses won’t invest without confidence in their protection from ruthless pricing strategies. How, after all, can U.S. manufacturers compete if China offers solar array for home at prices far below production costs?
Our businesses are more than capable of holding their ground. They, however, can only succeed if our government helps build a foundation for successful competition. This means fostering innovation, attracting investors, and ensuring a constantly improving market that encourages competition. But this only works if we recognize China’s decidedly un-free market economy. Unlike us, China’s economy depends heavily on exports, and this impacts how the solar landscape plays out.
Our government needs to ensure a level playing field for U.S. manufacturers. This involves offering production support, demand incentives, and enforcing sensible trade rules. With every tool at our disposal, we can reshape the domestic solar supply chain, establish clean energy independence, and secure a bright future for American solar manufacturing, benefitting workers, businesses, and, ultimately, our environment.
As a solar expert and advocate for solar companies in the U.S, I encourage you to consider these aspects while shopping for solar panels for your home. It’s not enough to choose green energy; we must be conscientious about where it comes from. Together, we can navigate the solar industry intelligently, shaping a brighter, more sustainable future for us all.
Original Articlehttps://pv-magazine-usa.com/2024/08/19/we-must-onshore-the-supply-chain/
