Solar Growth in China: Too Competitive for the United States?

Last month, news that the third largest solar manufacturer in the United States was leaving to build solar panels in China was stunning, but was it really all that surprising? Solar growth in China continues to eclipse renewable energy manufacturing here in the USA, despite government incentives to spur green jobs and investment in solar energy.

Can the U.S. compete with China with respect to solar manufacturing?

Is China too competitive for the United States when it comes to solar power? What is it that China has that we don’t?

Perhaps most importantly, the Chinese government is significantly more generous with financial support for the solar industry and private investment is not hindered by project-slowing red tape that trips up solar power plant plans here in the U.S.

Because solar energy has not achieved grid parity with coal and other fossil-fuel based electricity, it needs an edge to help it be competitive in the marketplace. Federal and state incentives help, but private investors also need assurance that putting their money in solar is a wise move.

For the United States to compete with China with respect to solar manufacturing and technology, renewable energy goals should be increased to boost demand. With rising demand will come additional private investment to supplement existing federal and state solar incentives.

Is it realistic to expect the U.S. to step up to be a competitive force in the global solar market?

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