Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Solar Industry in U.S. Clouded by New Uncertainty

Renewable Energy
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.

EcoWatch Daily Newsletter

By Michael Svoboda

The enduring pandemic will make conventional forms of travel difficult if not impossible this summer. As a result, many will consider virtual alternatives for their vacations, including one of the oldest forms of virtual reality – books.

Read More Show Less
Public Employees for Environmental Responsibility on Thursday accused NOAA of ignoring its own scientists' findings about the endangerment of the North Atlantic right whale. Lauren Packard / Flickr / CC BY 2.0

By Julia Conley

As the North Atlantic right whale was placed on the International Union for Conservation of Nature's list of critically endangered species Thursday, environmental protection groups accusing the U.S. government of bowing to fishing and fossil fuel industry pressure to downplay the threat and failing to enact common-sense restrictions to protect the animals.

Read More Show Less
Pexels

By Beth Ann Mayer

Since even moderate-intensity workouts offer a slew of benefits, walking is a good choice for people looking to stay healthy.

Read More Show Less
Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday. JustTulsa / CC BY 2.0

Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday.

Read More Show Less
The Firefly Watch project is among the options for aspiring citizen scientists to join. Mike Lewinski / Wikimedia Commons / CC by 2.0

By Tiffany Means

Summer and fall are great seasons to enjoy the outdoors. But if you're already spending extra time outside because of the COVID-19 pandemic, you may be out of ideas on how to make fresh-air activities feel special. Here are a few suggestions to keep both adults and children entertained and educated in the months ahead, many of which can be done from the comfort of one's home or backyard.

Read More Show Less
People sit at the bar of a restaurant in Austin, Texas, on June 26, 2020. Texas Governor Greg Abbott ordered bars to be closed by noon on June 26 and for restaurants to be reduced to 50% occupancy. Coronavirus cases in Texas spiked after being one of the first states to begin reopening. SERGIO FLORES / AFP via Getty Images

The coronavirus may linger in the air in crowded indoor spaces, spreading from one person to the next, the World Health Organization acknowledged on Thursday, as The New York Times reported. The announcement came just days after 239 scientists wrote a letter urging the WHO to consider that the novel coronavirus is lingering in indoor spaces and infecting people, as EcoWatch reported.

Read More Show Less

Trending

A never-before-documented frog species has been discovered in the Peruvian highlands and named Phrynopus remotum. Germán Chávez

By Angela Nicoletti

The eastern slopes of the Andes Mountains in central Perú are among the most remote places in the world.

Read More Show Less