US solar panel companies rushed to build new factories, as the Inflation Reduction Act promised to shower hundreds of billions of dollars on green energy firms that would reduce America's dependence on China. Even foreign firms joined in, including major companies from China, Korea, and Europe, setting up joint ventures in the US.
First Solar, a US company, was believed to be in the best position of all, after company insiders invested heavily into Joe Biden's election effort, and hired longtime friends of key officials who wrote the key provisions of the IRA.
All these investments are now imperiled by crushing Chinese competition, which has pushed solar panel prices far below those companies' cost of production. Predictably, they are asking their lobbyists in Washington for relief, warning that they will go out of business. They have paused or outright canceled their planned factory builds, and only Chinese-partnered companies are continuing US production.
Resources and links:
Reuters, Many US solar factories are lagging. Except those China owns
www.reuters.co...
Reuters, Insight: US solar panel manufacturing boom threatened by cheap imports
www.reuters.co...
PBS, Biden’s Inflation Reduction Act aimed to boost renewable energy. Subsidies could help one company reap billions
www.pbs.org/ne...
Hanwha company page
www.hanwha.com...
Sunk cost definition and applications, from Investopedia
www.investoped...
Chart, US solar prices vs global spot
www.reuters.co...
China solar module prices dive to record low
www.pv-magazin...
Closing scene, near Suzhou, Jiangsu
27 окт 2024
