Expanding Footprints: Chinese Solar Giants Eyeing US Solar Market
Several major Chinese solar power companies are making significant strides in the United States by establishing manufacturing facilities, a strategic move to cater to the surging demand in the US solar market. The move is expected to enhance production capacity, contributing to the country’s ambitious clean energy goals.
New Factories, Increased Capacity
Backed by Chinese manufacturers, at least four new factories are set to open in the US this year. These companies, previously centered in Asia, are now venturing into the US market. Upon completion, these facilities are projected to collectively supply over half of the 33 gigawatts of solar panels installed in the US last year.
Notable Players and Their Initiatives
Longi Green Energy Technology, headquartered in Xi’an, China, is collaborating with Chicago-based Invenergy to build a factory in Ohio. Production is scheduled to commence by March. Meanwhile, Trina Solar, another Chinese-owned company, is investing $200 million in a Texas-based factory, with operations slated to start by the summer.
Steven Zhu, President of Trina Solar US, expressed the company’s vision for creating an American manufacturing ecosystem to meet the burgeoning demand in the US solar market.
China’s Dominance in Solar Production
China has rapidly emerged as a global leader in solar panel production, accounting for more than 80% of panels sold worldwide. In contrast, the US solar industry has lagged, possessing less than half the solar capacity of China. While solar technology originated in the US in the 1950s, recent years have witnessed a decline in domestic industry growth.
The Importance of Solar Energy and US Initiatives
Daniel Kirschen, a professor at the University of Washington, emphasized the crucial role of solar energy in achieving a carbon-free future. The US, under President Joe Biden’s administration, aims to boost clean energy production. The Inflation Reduction Act, offering subsidies for solar manufacturers, is a key tool to stimulate domestic manufacturing of renewable energy components.
First Solar, a US company, has already invested $1.2 billion in local plants, contributing to a 75% increase in domestic manufacturing. The Inflation Reduction Act, championed by President Biden, aims to revitalize the US solar supply chain with an estimated $300 billion in subsidies over the next decade. The act encourages onshore manufacturing and supports the transition towards low-carbon alternatives.
In conclusion, the influx of Chinese solar companies into the US manufacturing landscape signifies a pivotal moment in the country’s solar industry, aligning with broader initiatives for a greener and more sustainable energy future.
Source：http://www.chinadaily.com.cn
