(RepublicanPress.org) – In August 2022, President Joe Biden signed the Inflation Reduction Act, which set several agenda items in motion. One of those initiatives was regarding clean energy investments in the US, giving tax credits for electric vehicles and boosting manufacturing infrastructure for renewable energies.
However, according to recent reports, China-backed companies are far outweighing their US counterparts regarding solar-manufacturing plants in the United States. Meanwhile, American factories are suffering despite the subsidies available through the 2022 legislation.
Within the next 12 months, the Chinese-backed companies are expected to be able to serve around half of the US market, providing at least 20 gigawatts of solar panel production capacity every year. They are reportedly setting up or already have factories in Ohio, Texas, Florida, Arizona, Alabama, and North Carolina.
SPV Market Research firm founder Paula Mints said the deck is “stacked” against American solar manufacturing companies because they simply can’t build as fast as companies from China. US Department of Energy’s National Renewable Energy Laboratory solar market researcher David Feldman said Chinese manufacturers have “a lot more experience building factories and setting up supply chains” than their US counterparts — putting them at a notable advantage.
US companies are reportedly having a difficult time competing against cheap imports. The CEO of Convalt, a US-based solar company, said America needs US factories like his to “survive [the] onslaught of low prices” in order to build competitive plants. The executive, Hari Achuthan, said if it weren’t for the cheap prices, the company would be “up and running today.”
Arizona-based First Solar, Hanwha Qcells, and other US manufacturers are urging the US government to impose new tariffs on solar panel component manufacturers built in countries where Chinese-backed companies are getting their supplies. American Alliance for Solar Manufacturing Trade Committee Attorney Tim Brightbill said at least that way US manufacturers will have a fighting chance against their Chinese-owned counterparts.
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