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Will reliance on solar make the United States dependent on China and other countries?

What the science says...

Although the United States still imports a majority of the solar panels it installs, domestic solar manufacturing is on the rise and likely to grow further as manufacturers open factories in the U.S.

Climate Myth...

Reliance on solar will make the United States dependent on China and other countries

"One of the biggest mistakes the West has done on green policies to cut CO2 emissions and trying to reduce dependence on oil and gas producing nations is that the transition to renewable energy puts the West at the mercy of China." (Forbes)

Although the United States still imports a majority of the solar panels it installs, domestic solar manufacturing is on the rise, especially following passage of the 2021 Infrastructure Investment and Jobs Act (IIJA), and the 2022 Inflation Reduction Act (IRA)1. In 2022, the United States manufactured approximately 10% more solar panels than in 20212. This share is likely to grow as manufacturers take advantage of IIJA and IRA incentives to open factories in the United States3. In addition, as previously noted, roughly 65% of today’s U.S. solar production jobs are in project development and 6% are in operations or maintenance, most of which cannot be outsourced4.

Finally, to the extent that there are concerns that solar energy will increase the United States’ dependence on China specifically, it bears noting that China is no longer a major source of solar panel imports—at least not directly5. Tariffs imposed by the U.S. government in 2012 on Chinese-sourced solar panels have considerably diminished China’s status as a principal U.S. supplier. In 2022, approximately 77% of U.S. solar panel imports came from four countries: Vietnam (37%), Thailand (17%), Malaysia (16%) and Cambodia (7%). While the U.S. Department of Commerce found that companies in these four countries have been incorporating Chinese-sourced materials without paying corresponding tariffs, the U.S. Government has taken measures to crack down on noncompliance6. In particular, the U.S. Government now requires, as of June 2024, that solar manufacturers exporting from these countries to the U.S. certify their compliance with all relevant trade rules, subject to potential audit7.


Footnotes:

[1] U.S. solar photovoltaic module shipments up 33% in 2020, U.S. Energy Information Administration (Sep. 2, 2021); U.S. Dep’t. of Energy Solar Energy Tech. Office, Solar manufacturing, U.S. Dep’t. of Energy Office of Energy Efficiency and Renewable Energy (last visited March 25, 2024).

[2] David Feldman et al., Spring 2023 Solar Industry Update, Nat’l Renewable Energy Laboratory, 68 (Apr. 27, 2023)

[3] U.S. Dep’t. of Energy, DOE Fact Sheet: The Bipartisan Infrastructure Deal Will Deliver For American Workers, Families and Usher in the Clean Energy Future, U.S. Department of Energy (Nov. 9, 2021); Bella Isaacs-Thomas, What the Inflation Reduction Act does for green energy, PBS News Hour (Aug. 17, 2022); U.S. Dep’t of Energy, Inflation Reduction Act of 2022; Kavya Balaraman, Inflation Reduction Act could spur American Manufacturing Renaissance, Advocates Say, UtilityDive (Aug. 18, 2022)

[4] National Solar Jobs Census 2022, Interstate Renewable Energy Council (last visited March 25, 2024)

[5] Ian Tiseo, Distribution of solar photovoltaic modules imported in the united States in 2022, by country of origin, Statista, Jan. 25, 2024.

[6] Eric McDaniel, The U.S. Imports Most of Its Solar Panels. A New Ruling Might Make That More Expensive, National Public Radio (Aug. 18, 2023).

[7] U.S. Department of Commerce, Department of Commerce Issues Preliminary Determination of Circumvention Inquiries of Solar Cells and Modules Produced in China, Dec. 2, 2022

This rebuttal is based on the report "Rebutting 33 False Claims About Solar, Wind, and Electric Vehicles" written by Matthew Eisenson, Jacob Elkin, Andy Fitch, Matthew Ard, Kaya Sittinger & Samuel Lavine and published by the Sabin Center for Climate Change Law at Columbia Law School in 2024. Skeptical Science sincerely appreciates Sabin Center's generosity in collaborating with us to make this information available as widely as possible.

Last updated on 26 October 2024 by Sabin Center Team. View Archives

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