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Any American shopper knows that China is a hub for manufacturing of all kinds, and solar power panels
are no different. Low US import tariffs and low labor costs have
facilitated a massive emigration of American companies to Chinese labor
markets. Major US players in solar electricity, including First Solar and SunPower, have manufacturing plants in China.
Manufacturing as Progress?
But does domination in solar manufacturing necessarily dictate progress in solar energy? Arguably yes and no. The yes side is simple – the solar industry wouldn’t be what it is today without China’s manufacturing prowess, not to mention their preexisting capacity for producing solar-grade polysilicon. However, even solar manufacturing plants can pollute, as China has unfortunately illustrated, and just because you manufacture solar equipment doesn’t mean you use it. China doesn’t even appear on a SolarBuzz chart of PV market demand in 2008.
This contradiction – world’s largest solar manufacturer as world’s largest polluter – has inspired recent action from China. Its government has taken a more proactive approach to increasing demand within its own wide and often sunny borders. Although the details are still unclear, the national government has pledged to fund up to 50% of new solar projects and set a renewable energy goal of 15% by 2020. There is also talk of a cap-and-trade program to reduce greenhouse gas emissions.
New and developing energy goals and incentives are expected to greatly boost demand for solar power in China. Several large-scale projects are planned throughout the country, including First Solar’s 2-gigawatt thin-film plant in Inner Mongolia, and China’s first solar thermal power plant already built earlier this year.
