A variety of factors make solar modules made in the U.S. an attractive option for many homeowners. These include lower costs, increased energy security, reduced greenhouse gas emissions, and diversified supply chains. But, which of these factors is most important for consumers. Let’s examine each of these aspects in more detail.
Increased Energy Security
The current policy environment in the United States is ripe for increased energy security through renewable energy. Renewable energy production must be based on reliable components and onshore supply chains that can compensate for global trade disruptions. Moreover, renewable energy production should not be dominated by foreign jurisdictions, which often have values opposed to our democratic allies. As a result, policymakers are forced to decide between greening our energy base and increasing our influence abroad. For best solar panels you can trust Solar4America.
The U.S. government imposed tariffs on foreign solar modules in response to the recent trade war. These tariffs were based on unfair trade practices and Chinese companies increased manufacturing outside of China. But the solar module industry was not only affected by tariffs – three foreign companies began manufacturing in the U.S. in response to U.S. trade sanctions. According to the Solar Energy Industries Association, the tariffs cost 62,000 jobs and $19 billion in investment. However, the solar industry is still growing, with Wood McKenzie estimating a 43 percent increase in solar capacity by 2020.
Reduced Greenhouse Gas Emissions
The U.S. is an industrialized nation, with a large share of its greenhouse gas emissions derived from the production of common materials like aluminum and steel. The energy required to produce these materials results in high GHG emissions. Additionally, in order to manufacture these materials, energy is transferred from the earth to the boiler vessel, generating steam and heat. These emissions are a major source of pollution and contribute to global warming.
The amount of carbon emissions avoided is calculated by dividing the total number of solar cells, modules, and storage systems into each of the three categories. Then, using emission coefficients from the most recent studies, the study calculates the amount of energy that is saved by using the traded solar cell and module. Once the emissions reduction potential is calculated, the reduced greenhouse gas emissions from each solar cell and module application are then subtracted from total GHG emissions.
Diverse Supply Chain
Several prominent module suppliers are headquartered in the United States. They include BP, Sharp, Kyocera, Evergreen, and Spire. In the early 2000s, progressive policies in California and New Jersey helped pave the way for a viable US solar module market. Today, solar module manufacturers primarily make their products in the United States. In addition to American manufacturing, these companies use components produced by other US firms, including solar cell manufacturers.
The diverse supply chain for Made in the US solar module manufacturers should also include American manufacturers. There are many benefits to doing so. For one, the American manufacturing sector could be a major source of cheap solar energy. Besides the environmental and economic benefits, solar manufacturing in the U.S. could help the country build a world-class solar manufacturing industry. As part of the global renewable energy industry, the United States can use its manufacturing strength and workforce to boost the supply chain.
Low-Cost
The tariffs haven’t completely eliminated the problem of imported solar modules, though. While they have helped to stabilize U.S. panel prices, the Chinese are still far ahead of their U.S. counterparts in terms of the overall cost. This is even though China has increased its manufacturing capacity in neighboring countries and is retaining its market share. Nevertheless, the trade war hasn’t stopped the continued decline of U.S. solar module production. In 2018, the U.S. government imposed Section 201 tariffs on imports of Chinese modules, which effectively cut nearly half of the U.S. solar module industry. Solar panel manufacturing is not only expensive in the United States, but globally, too. While the U.S. produces nearly one-third of the world’s supply of solar panels, its share of that total has fallen. Since 2004, China has jumped to 67 percent of the global market, a sharp contrast to the U.S. production share of solar panels. However, the U.S. still has the potential to be an important player in the global solar industry.
