Quantcast
Environmental News for a Healthier Planet and Life

Solar Industry in U.S. Clouded by New Uncertainty

Renewable Energy
Solar Industry in U.S. Clouded by New Uncertainty
Solar panel array at the George Washington Carver Center in Belstville, MD. Tom Witham / USDA / Flickr

By Kieran Cooke

The U.S. solar industry is losing its shine. Although solar power is seen as a key way to avoid the use of climate-changing fossil fuels, U.S. solar companies are cutting investments and laying off workers. An industry employing more than 230,000 people and with an estimated worth of $28 billion is now warning of trouble ahead.


More than 10,000 jobs in solar were lost in 2017, says a report by the Solar Foundation, a non-profit research firm.

The clouds spreading across the U.S. solar sector are in part due to a slowdown in sales in so-called mature markets in California and the Northeast, both areas of double digit solar growth in recent years.

However, industry analysts say the main reason for the present travails in the solar sector is the announcement earlier this year by President Donald Trump of a 30 percent tariff on imported solar panels.

Help at Home

The aim, said Trump, is to support domestic manufacturers and stop the mass import of solar panels, mainly made in southeast Asia, South Korea and China. At present about 90 percent of solar panels installed in the U.S. are imported.

"We'll be making solar products now much more so in the U.S.," said Trump, announcing the imposition of tariffs in January.

"Our companies have been decimated and those companies are going to come back strong … a lot of workers, a lot of jobs."

The overwhelming majority of people involved in the U.S. solar sector are involved with installation and maintenance; a large number of firms also manufacture subsidiary products, such as racks for mounting the panels.

While some U.S.-based manufacturers of solar panels—there are now very few of them—have welcomed news of the tariffs, most in the industry say the move is likely to drive up costs in what is a highly competitive energy sector.

Chinese Domination

China now dominates the global solar power market; it's the source of two thirds of the world's total solar panel capacity and it also buys up half of the world's production.

Chinese manufacturers have invested heavily in research and development and their solar products have become increasingly sophisticated.

U.S. industry analysts say the products of domestic companies will be too expensive and will not be able to compete with other energies such as wind power or gas. Demand will fall, and jobs will be lost rather than gained.

From 2010 to 2016, solar power installations in the U.S. went into overdrive, driven by falling costs and a range of government incentives. The industry says nearly 50GW of capacity is now installed—enough to power 10 million homes.

The Trump administration has made no secret of its wish to promote the use of fossil fuels—including coal—and remove incentives which were aimed at widening the use of renewable energies.

Some in the solar industry say that with or without the tariffs—which have been imposed on a sliding scale for a four-year period, with a 15 percent charge in the final year—solar power is very much here to stay. Demand might slow, but it will not stop.

In anticipation of the tariff hike, solar companies stockpiled a vast amount of imported solar panels last year; in the last three months of 2017, U.S. imports of solar panels from China increased by more than 1,000 percent—enough to supply the industry for several months.

It seems that Trump's efforts to discourage the use of renewable energy are not working in the way he might wish.

Recently, growth in solar power installations has been particularly strong in the Midwest and South—in pro-Trump states that have traditionally turned their backs on renewable energy and supported the president's fossil fuel policies.

Reposted with permission from our media associate Climate News Network.

Ningaloo Reef near Exmouth on April 2, 2012 in Western Australia. James D. Morgan / Getty Images News

By Dana M Bergstrom, Euan Ritchie, Lesley Hughes and Michael Depledge

In 1992, 1,700 scientists warned that human beings and the natural world were "on a collision course." Seventeen years later, scientists described planetary boundaries within which humans and other life could have a "safe space to operate." These are environmental thresholds, such as the amount of carbon dioxide in the atmosphere and changes in land use.

Read More Show Less

EcoWatch Daily Newsletter

A 3-hour special film by EarthxTV calls for protection of the Amazon and its indigenous populations. EarthxTV.org

To save the planet, we must save the Amazon rainforest. To save the rainforest, we must save its indigenous peoples. And to do that, we must demarcate their land.

Read More Show Less

Trending

UN Secretary General Antonio Guterres delivers a video speech at the high-level meeting of the 46th session of the United Nations Human Rights Council UNHRC in Geneva, Switzerland on Feb. 22, 2021. Xinhua / Zhang Cheng via Getty Images

By Anke Rasper

"Today's interim report from the UNFCCC is a red alert for our planet," said UN Secretary General Antonio Guterres.

The report, released Friday, looks at the national climate efforts of 75 states that have already submitted their updated "nationally determined contributions," or NDCs. The countries included in the report are responsible for about 30% of the world's global greenhouse gas emissions.

Read More Show Less
New Delhi's smog is particularly thick, increasing the risk of vehicle accidents. SAJJAD HUSSAIN / AFP via Getty Images

India's New Delhi has been called the "world air pollution capital" for its high concentrations of particulate matter that make it harder for its residents to breathe and see. But one thing has puzzled scientists, according to The Guardian. Why does New Delhi see more blinding smogs than other polluted Asian cities, such as Beijing?

Read More Show Less
A bridge over the Delaware river connects New Hope, Pennsylvania with Lambertville, New Jersey. Richard T. Nowitz / Getty Images

In a historic move, the Delaware River Basin Commission (DRBC) voted Thursday to ban hydraulic fracking in the region. The ban was supported by all four basin states — New Jersey, Delaware, Pennsylvania and New York — putting a permanent end to hydraulic fracking for natural gas along the 13,539-square-mile basin, The Philadelphia Inquirer reported.

Read More Show Less