The United States continues its efforts to reduce foreign dependence as state representatives request an extension of previously placed tax effects on imported goods. This recent act has issued a bolster to the solar industry as higher taxes will make foreign products more expensive than American materials.
The result would be more affordable American products, which would increase local markets, improve the economy, open new jobs, and ultimately improve America’s energy security.
Growth In Domestic Manufacturing
An announcement by the US International Trade Commission (USITC) details a spike in solar modules produced in the United States. The domino effect of a growing manufacturing field is that investments will follow suit. This creates a twofold path of expansion that is sure to reap rewards for consumers, manufacturers, and investors alike.
This continued momentum of the solar field comes thanks to efforts by Ohio Senator Sherrod Brown and the Toledo Blade Editorial Board. The bipartisan group that joined the push specifically asked the President to increase tariffs on Chinese solar imports. This request comes in a reflection of President Biden’s 2023 attempt to suspend tariffs on Chinese solar products. Thankfully, at the time, the US Senate voted to reject the suspension.
Renewable Energy Security
Mounting evidence continues to reveal that the need for renewable energy options is paramount. At risk is not just the economy, but civilization as it stands. The last thing the United States’ renewable energy field needs is foreign interference and competition. Senator Brown and his supporting group agreed that America’s solar module industry needs all the help it can get, and thus, we must abolish any dependence on China.
In a letter to the white house, written on January 26, 2024, Senator Brown warned that “by 2026, China will have enough capacity to meet annual global demand for the next ten years. This capacity is an existential threat to the U.S. solar industry and American energy security.”
The concern that China is leveraging their own subsidies to undercut all global competition in solar energy production is alarming. If we were to face an immediate climate crisis, America needs to be sufficient in supporting itself, not dependent on China. We’ve learned this lesson during the COVID-19 pandemic, and history does not need to repeat itself.
The Sun Shines On The Future
With China selling solar panels for less than half of the price of a US produced similar, the change has to come from our side. By increasing taxes on imported solar modules, it gives the American producers a chance to breathe.
First Solar is the only solar-module producer of the world’s top ten largest headquartered in the United States. They employ 2,000 workers at their facility in Ohio and have been “investing in America since 1999.” They are currently bustling to open their fourth domestic factory and plan to have it in full operation by 2025.
Prioritizing US solar manufacturing allows local companies like First Solar to retain (and expand) jobs, improve local economies and strengthen the nation’s energy security.
Support for American industries ensures that manufacturing and commerce remain ethical, responsible, and, most importantly, next door. As long as the sun keeps shining, America will keep working; all we have to do is continue to support it.
