387856 01: This File Photo Dated April 22, 1986 Shows An Aerial View From Over Arlington, Va Of The Pentagon, Headquarters Of The Us Department Of Defense. The 29-Acre Building Was Dedicated On January 15, 1943, Nearly 16 Months To The Day After The Groundbreaking. (Photo By USAf/Getty Images)
Virginia Gov. Glenn Youngkin can’t run for reelection, so it’s frustrating to see him spending so much time trying to score political points. The latest episode came earlier this month, when according to Fox News, Youngkin sent a letter to Defense Secretary Lloyd Austin questioning the Pentagon’s plan, announced back in January, to install solar panels on the building’s massive roof. Youngkin complained that the plan included no requirements for American-made technology, raising the question “whether American taxpayer dollars will be used to purchase solar equipment from the Chinese Communist Party.”
A few days later, Fox News reported the Pentagon offered reassurance that it had a “rigorous and extensive oversight process to ensure compliance” with the Buy American Act and other laws requiring domestic content.
According to this second article, a Youngkin spokesperson quoted the governor as “pleased that Secretary Austin will follow his recommendations to adopt the ‘Made in America’ requirements for procuring Chinese solar panels.”
Younkin’s attempt to snatch victory while still clenched in the jaws of defeat is amusing, but more than a little puzzling. Apparently Younkin is under the impression that solar panels are inherently Chinese.
Let’s be clear: Solar energy is one of the great American success stories. Americans invented solar photovoltaic technology, nurtured it and led the world in its development for half a century. American ingenuity put solar on the path to becoming today’s low-cost leader for power generation, to the point that it is projected to become the world’s dominant source of electricity by 2050.
However, as with a lot of American manufacturing, most solar panel production migrated overseas as the technology matured. Starting in 2010, China bet big on renewable energy, investing in solar technology itself and driving down panel prices to the point where most manufacturers in Europe and the U.S. were driven out of business. Only one U.S company remains in the top ten worldwide.
Chinese companies also likely benefited from the use of forced labor in the production of polysilicon, the raw material for most solar panels. The U.S. banned the importation of solar panels made with forced labor in 2021.
By then, however, China had developed a mature supply chain and technological know-how to support low-cost production. Today China dominates every aspect of solar manufacturing, with about 80% of the world’s market share. Chinese solar companies have expanded production capacity beyond the ability of world markets to absorb, driving down already-low prices by 42% in 2023.
Domination of the world market is only half the story, though. China also leads the world in deploying solar at home. China installed as much solar PV capacity in 2022 as the rest of the world combined, and then doubled that in 2023. China also leads the world in offshore wind deployment and electric vehicle sales and dominates production of lithium-ion batteries.
So the concern that the Chinese are winning the clean energy race is well justified, and Youngkin is not the only American who hates the taste of second place. But our leaders only have two choices: stand around talking trash about the competition, or get in the game.
That’s what Congress did in passing laws like the Bipartisan Infrastructure Act and the Inflation Reduction Act (IRA) that support American investment in solar panels, wind turbines, electric vehicles and other components of a green revolution. More controversially, President Joe Biden also extended Trump-era tariffs on Chinese-made polysilicon solar panels to give American manufacturers a chance to scale up.
Not everyone supports tariffs on Chinese-made solar panels, given the inflationary impact of trade barriers and the urgent need to deploy as much renewable energy as possible to lower CO2 emissions. Still, the learning rate of solar is expected to continue driving prices lower over the long term. Even with a less-mature, more expensive supply chain, American-made panels are projected to become cheaper than imported panels by 2026.
One year after the IRA’s passage, a Goldman-Sachs analysis found the law was meeting its objectives of driving private sector investment and job creation in the clean-tech sector, including manufacturing. This month, Wood Mackenzie reported that U.S. solar manufacturing capacity increased 71% in the first quarter of 2024, making it the largest quarter of solar manufacturing growth in history.
The Pentagon is not known for caring about saving money, so maybe it isn’t surprising that it is only now following the example of millions of Americans by putting solar panels on the roof. Defense Department officials say the move is intended to support the resurgence in American manufacturing and to deliver the benefits of increased energy resilience and reliability, including having an uninterrupted power source in case of a cyberattack or a grid outage.
Low-cost, clean power, resilience and energy security are all part of the great American success story that is solar energy. A note of congratulation, not complaint, would be the better response from a governor whose state hosts the Pentagon.
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The post The Pentagon’s plan to go solar: another chapter in a great American success story appeared first on Virginia Mercury.