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Why the "Buy American" Solar Requirement is Wrong

By Dana Blankenhorn
January 12, 2011 | 16 Comments

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Word that the U.S. Military is insisting on a “buy American” policy for solar panels made me laugh out loud.

Their fear is that China is subsidizing its industry and we must fight back. Somehow, if the military gets a little bargain we're all going to become as dependent for our energy on China as we are now on Saudi Arabia.

Uh, no.

Solar energy shares of all kinds are surging in value and it doesn't matter whether the stuff comes from Shanghai or Sheboygan.

Because the solar power “war,” if such a war exists, is a war we all win. Solar technology is plowshares technology.

What happens when China installs panels is the same thing that happens when Americans do it. Subtle downward pressure is placed on the price, and long-term value, of oil.

That's the enemy. Not China, not really Saudi Arabia. But the price and value of oil.

Here in the second decade of the 21^st century we are, in terms of energy, acting no better than cavemen. We're wandering around the world, clubbing and killing one another, looking for stuff to burn. And then we complain (some of us) that the planet is over-heating.

Heat can be harvested. Just as we can harvest the wind, and the molten core of our planet, and the Sun for our energy needs. Harvest, not hunt. That's how civilization begins, when you begin transforming a harvest instead of hunting down what you need.

When an Israeli professor condemns current methods for evolving more efficient solar panels who benefits? Is there some “final” answer to the questions of efficiency, of durability, and of price? No. When you can buy a 100% efficient panel for the price of a pack of cigarettes that will last forever does it matter where it comes from? You're getting the power from it.

There are breakthroughs happening every day . Having renewables pass the energy share of nuclear power is just a first step.

This is a global market where everyone plays and everyone wins.

Who loses when we harvest more of the energy all around us, no matter where the technology comes from, and no matter who manufactures it?

No one but the oil barons. We need to remember that as the global competition moves ahead.

Green Power, Other, Solar Energy

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

16 Reader Comments

Comment
1 of 16

dennis-houghton-41194

January 12, 2011

The US military has had "Buy American" procurement clauses for decades. Military planners created the military-industrial complex and seem to retain the anachronistic attitude the there should be some actual industrial manufacturing capacity on the US mainland.

I wonder why a few foreign manufacturers are actually investing in US based production facilities despite onerous labor costs and tyrannical environmental rules. Maybe they just want to "sell American" in a global economy ruled by xenophobic cavemen.

Comment
2 of 16

davidfu

January 12, 2011

Fighting over subsidies are not new either. As many times before, the western countries are giving special benefits to their own industry, and complains when someone else does the same. Afterall, that's why were still the richest.

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3 of 16

DanaBlankenhorn

January 12, 2011

I was going to click over and criticize this goomba, then I find the editor just changed my headline, and I'm the goomba.

Gee, that Dana Blankenhorn is an idiot.

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4 of 16

michael-miller-44813

January 12, 2011

Don't worry, they are buying american made. the cheapest panels are made by Federal Prison Industries/UNICOR by prisoners.

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5 of 16

jonathan-chance-166185

January 12, 2011

Can we make the global petro-banking warfare racket more eco-friendly?

http://TheOnion.com/video/in-the-know-how-can-we-make-the-war-in-iraq-more-e,14213

Treasurynet.Org

Treasurynet.US

Comment
6 of 16

SolarFred

January 12, 2011

Dana, this is as much of an issue about global politics, U.S. politics, and consumer desires.

Regardless of a competitive threat from China, the message (especially in this economy) from politicians and customers is that they increasingly want solar built by American workers. That they don't realize how automated solar manufacturing is, is besides the point for them. As a result, more foreign manufacturers are building factories in the U.S. Price will also continue to drive the market, but I do believe solar/energy/climate change is becoming politicized to the point that domestic manufacturing is a must for tier 1 solar PV and hot water manufacturers.

Now, I have to admit that the opinion above is based on my own buzz and personal reading of the market and news, but I wouldn't be surprised if foreign manufacturers haven't done their own internal market research and concluded the same thing.

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7 of 16

timmarsh

January 12, 2011

Whether solar panels, electronics, tools, or clothing, there's nothing wrong with the old "Be American, Buy American" philosophy. Study economics and it'll tell you, that every great world power has 3 components: agriculture, mining, and manufacturing. A private firm in the U.S. having to pay its employees a living wage and also having to comply with Federal and state environmental regulations, is at a distinct disadvantage when competing with China, Inc. There's no reason, as with the foreign-based car companies, a Chinese solar panel manufacturer couldn't build a plant here in the U.S. and employ AMERICAN production workers. Then again, what's wrong with tariffs and duties to "level the economic playing field"? Ask anyone who's been laid-off or whose job has been out-sourced how they feel about this issue. Then it quits becoming theoretical, and starts becoming hauntingly-personal.

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8 of 16

davidfu

January 12, 2011

To me it doesn't matter where we make the solar panels. The US needs jobs? Fine, subsidize. In fact this production should be subsidized all over, EU, US, China.

Put a 5 cent CO2-tax on every kw/h produced by coal/oil, and the worst forms of carbon-emitting energy. It would pay for many renewable plants, and create many jobs. 50% renewables by 2025. Could be OK.

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9 of 16

joepierce1988

January 13, 2011

To me it doesn't matter where we make the solar panels. The US needs jobs? Fine, subsidize. In fact this production should be subsidized all over, EU, US, China.

cheap cars

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10 of 16

DanaBlankenhorn

January 13, 2011

fireofenergy-150745 -- Our solar PV companies are not having trouble competing, and I think they'll do even better in the future as we're making much faster breakthroughs in our university system than the Chinese are making in theirs. (They have a lot of engineers, and smart ones, but the smartest often wind up coming here and staying.)

The question is whether we should be subsidizing profitable, competitive industries at all, given our debt crisis, or whether unemployment might be driven down more effectively by other policies. At least that's how I think.

I don't mind you disagreeing. You make a fair point. We are on the same side here, for harvesting energy and against fighting to find stuff to burn like our caveman ancestors.

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11 of 16

DanaBlankenhorn

January 13, 2011

dennis-houghton-41194 I don't disagree with your factual analysis at all. I'm just wondering if plowshares technology doesn't have different requirements, and if this whole "buy American or the Chinese will bury us" rhetoric isn't taking us down the wrong path.

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12 of 16

erik-anderson-163442

January 13, 2011

I couldn't disagree with the author of this article more.
There should be nothing more important to this country than producing more goods, getting away form the consumption based economy and supporting the USA Renewable Energy Industry.

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13 of 16

thomas-mayrand-14505

January 13, 2011

It shouldn't matter where the technology comes from. If we can share it with others, great! The main thing producing locally should be about is the reduction in energy used in transporting the physical products after manufacturing. (Who is fueling all those freighters and what else do they carry?)
Sharing or using other's technologies to produce locally will in turn increase domestic jobs.

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14 of 16

dennis-houghton-41194

January 13, 2011

Dana,
My first comment was intentionally factual but presented as satire. If I was too subtle?> I agree with your question ""buy American or the Chinese will bury us" rhetoric isn't taking us down the wrong path." It is.

I have dealt with dozens of DOE and military projects with "Buy American" clauses. There are always exceptions. Fill out the right form and provide documentation and in many cases you can substitute an equal product. Occasionally specific brands and models are called out, then you typically can not substitute after the contract has been let but the initial bidding would be fair.

Thanks for all the good topics in your posts

Comment
15 of 16

fred-linn-151968

January 17, 2011

We need to trade only with countries that support unions and have similar trade, environmental and social welfare standards.

Americans workers can compete with any other workers on an equal basis, but should not have to compete against workers who are exploited with slave wages perpetuated by government policies.

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16 of 16

aligatorhardt

February 1, 2011

We all save money on health care and pollution clean ups by installing solar power instead of coal or nuclear. Even if the panels are imported we still have good reason to use them. However, the need for employment in the US is worthy of some federal investment and some import tariffs have worked in the past to encourage manufacturing here. The additional costs and effects of transporting materials across the world should also be considered when comparing the choice between building products here or there. We need to restore the ability to produce goods for export. Too much emphasis is being assigned to overall efficiency while leaving out other values.

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About: Dana Blankenhorn has covered business and technology since 1978. He covered the Houston oil boom of the 1970s, began making his living online in 1985, and launc... more »