The Giant awakens to solar power while America


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China Solar Industry Leadership is driven by manufacturing scale, installation incentives, and supply-chain integration, cutting solar panel prices as firms like Suntech build U.S. assembly plants to bypass tariffs and fuel renewable energy deployment.

 

Inside the Issue

China's leadership reflects scale manufacturing, incentives, and U.S. assembly to cut PV costs and lead supply chains.

  • Suntech sold panels below marginal cost, lowering U.S. prices
  • U.S. assembly plants help bypass tariffs and trade barriers
  • Installation incentives accelerate domestic PV deployment
  • EVSO moves to China to align with industry center

 

While the U.S. is still floundering with ad-hoc investments in clean energy, China has developed a straight-forward, no-nonsense approach to reaching 2GW solar capacity by 2011.

 

It is gaining strong leadership in the solar industry as China outshines the U.S. in making solar products by investing heavily in manufacturing and incentivizing installation. Chinese companies like, Suntech Power Holdings, part of a handful of dominant players in the solar market, have succeeded in driving solar panel price reductions over the last six months by selling panels on the U.S. market below the marginal cost. Furthermore, China is circumventing protectionist legislation by constructing assembly plants in the U.S.

Evolution Solar is setting down roots in China to take advantage of this shift in the center of gravity for the solar industry. In the last century, the United States was the home of most television manufacturers. By the end of the century there were none left in America. They were all in Asia. The same is happening with solar energy and EVSO has positioned itself to be a resource to the global green tech revolution from its new base in China.

“China has made a commitment to solar and placed substantial funds behind that commitment, with a boost from climate talks in recent years,” stated Robert Kaapke, CEO of Evolution Solar Corp. “Talking about change is very different form actually changing; we want to be part of real change and that is why we are setting down our roots where real change is taking place.”

Nearly all solar providers in America will source parts and components from China in the years ahead as solar innovators retool to stay competitive. EVSO expects to position itself to compete with producers, such as SunTech and Energy Conversion Devices for a part of this market.

 

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