Solar panel manufacturing jobs are moving to China. One of the major solar panel plants in the U.S., Evergreen Solar is moving its assembly plant to China.
According to a report from the Boston Globe:
Little more than a year after cutting the ribbon at a new factory in Devens built with more than $58 million in state aid, Evergreen Solar said yesterday that it will shift its assembly of solar panels from there to China.
The move is expected to take place next year. According to reports the manufacture of the wafers and the solar cells will continue in the plant in Devens. The assembly of the panels will be transferred to China due to the falling prices of solar panels.
Recently the prices of solar panels have been lowered by as much as 30% due to the lower production costs in China.
In explaining the move to China, Evergreen chief executive Richard M. Feldt said in the company’s filing that prices for assembled panels have fallen more than 30 percent in just the last year, making it “very difficult for manufacturers located in high-cost regions to remain price competitive.’’
Earlier this year, Evergreen executives unveiled plans to expand in Wuhan, China, where they said they expected to be able to make solar panels for about $1.50 a watt - far cheaper than they could at Devens.
At the same time we know that trade relations are strained between the U.S. and China. The New York Times reported at the end of September, 2009:
Companies that import solar panels to the United States are facing up to $70 million in unexpected tariffs.
The unexpected tariff first became known when a small company inquired from Customs as to the tariff on the import of a relatively small order of solar panels.
... the duties come at a particularly difficult time for the global solar power industry. Many panel manufacturers are losing money because of fierce competition from ever-expanding production in China and a worldwide downturn that has driven down prices. Raising prices now to cover past tariffs will be hard because the market is glutted with panels; prices have fallen a fifth since early this year.
As Evergreen Solar plans to move to China for final assembly
Some Chinese solar panel manufacturers are already planning to move final assembly of solar modules to plants in the United States, a step that could allow them to avoid the duty someday, said Rhone Resch, the chief executive and president of the industry association.
Customs seems to be in the middle of the tariff confusion. At this time about half of the solar panels sold in the U.S. are imported. The tariff could greatly increase the cost to the consumer even with lower production costs and the apparent over-inventory at this time.
Shopping for solar panels for home use is still a costly affair. Recently, when determining the cost to completely go to solar power in one particular area the cost was close to $200,000 as weighed against an average electric bill of $245. It was estimated that it would take approximately 29 years to hit the magic point of break even.
Keeping an eye on the trade situation is most relevant as more of our solar panel manufacturers move all or part of the process to China. In the meantime most of us can afford to go solar with the hot water heater, for use in out buildings or garages. Every little bit helps save on the monthly electric bill while doing something to help save the earth.