For Solar Consumers, Buying American Is International Affair

PHOTO CREDIT: SUNPLUGGERS.COM
Based in Spain, Siliken Renewable Energy has a new solar-module assembly plant in San Diego. Some solar installers in the San Diego area obtain modules directly from the factory there.

By Michael Balchunas

Published Jan. 23, 2010
Updated Feb. 5, 2010

Among more than a thousand Californians who flocked to meetings last year to learn about solar electricity, not one spoke of saving the world from greenhouse gases.

There were two things people mentioned again and again that they wanted to save — money and American jobs.

Solar equipment costs are now at historic lows, as are installation prices in many locations, but saving money with solar depends on many variables; please see our story "Made in the Shade: How to Save Money While Plugging Into the Sun" and Dan Fink's column "DIY Solar Energy Evaluation: Quick and Dirty but Nice and Easy."

Saving American jobs when buying solar is a little complicated too.

A Long History

Although California passed a net-metering law in 1995 and established its first solar photovoltaic incentive program in 1996, neither prompted a rush by homeowners or small-business owners to install solar PV arrays.

Until around the year 2000, the primary retail customers for solar modules in the United States were still off-grid homeowners, boat owners and recreational-vehicle users who had no other way to obtain electricity.

PHOTO CREDIT: SUNPLUGGERS.COM
A Uni-Solar product exhibit.

A small factory in Camarillo, Calif., operated by the oil giant Royal Dutch/Shell Group, was a longtime source of solar-electric modules that made their way into the few U.S. retail channels. In Michigan, United Solar Ovonic also produced solar PV equipment. In Frederick, Md., a company called Solarex made photovoltaic products. In Delaware, AstroPower worked on ways to make lower-cost solar modules.

Around 2000, solar began a seismic shift. Californians annoyed by rising electricity costs and "rolling blackouts" and brownouts began putting panels on their roofs in significant numbers. Grid-tied systems without battery backup shut down delivery of electricity during outages, but buying solar for some pioneering Californians was a way to make a statement. At the same time, the "globalization" of many industries was turning from a buzzword into a fact.

In Germany, a generous solar-electricity production incentive, called a feed-in tariff, guaranteed a handsome investment return for solar owners. It prompted a huge surge of solar PV installations, the opening of numerous factories in what is now called Germany's "Solar Valley," and the creation of tens of thousands of jobs.

In Japan, government incentives also spurred a robust domestic market that led to rapid growth in solar production and the involvement of large companies.

PHOTO CREDIT: SUNPLUGGERS.COM
Kyocera points to a link between solar
and plug-in hybrid electric cars.

In the United States, small solar companies began sprouting up to compete with the products from Shell, Solarex, AstroPower and Michigan's Uni-Solar. Evergreen Solar began assembling modules at a small manufacturing site in Massachusetts, and in 2003 some of its panels were installed on an outbuilding at the White House.

Evergreen was followed in the mid-2000s by the emergence of First Solar Inc., headquartered  in Arizona, and SunPower Corp., based in California.

Each of these companies went public after years of incubation as tiny private enterprises. With globalization in full swing, they did not confine their operations or their sales to this country, but instead opened factories and sales offices around the world. German and Japanese manufacturers of solar equipment at the same time began opening plants and sales offices in the U.S.

The result was that the solar PV industry, which in mass-market terms is only a few years old, was born and has grown up as a global industry. The raw materials and the manufactured parts that go into solar photovoltaic products are made, shipped, assembled and sold all over the world.

Buy American?

It's easier said than done. But as the recession deepened last year, a concern expressed by many serious solar buyers was whether they could help save American jobs. Following is a rundown of some of the companies whose solar products may be available to homeowners and small-business owners, along with their countries of origin and U.S. presence.

The list, arranged alphabetically, is not comprehensive but includes top-selling solar brands in the U.S., Canada and Mexico.

Akeena Solar: This California-based company does not manufacture its own modules but sells a brand, Andalay, made for it under contract. The brand is being sold now at some Lowe's stores in California. Akeena is primarily an installation company. The supplier identified last year is Suntech Power Holdings, a Chinese company that is one of the world's largest solar manufacturers. Suntech has announced plans to establish a manufacturing plant in Goodyear, Ariz., near Phoenix.

BP Solar: The company is part of BP Global, formerly British Petroleum, which is still based in London. Oil companies such as BP, Exxon, Atlantic Richfield Co., Amoco and Shell all operated solar subsidiaries in the 1970s or 1980s. BP Solar announced last year that it would stop assembling panels and was laying off about 140 out of 600 workers at its U.S. plant in Frederick, Md., the site of the former Solarex operation. BP Solar said it planned to continue making solar components in Maryland, such as silicon ingots, wafers and cells. Reports say that BP has recently contracted with Jabil Circuit Inc., a worldwide company based in St. Petersburg, Fla., to assemble modules in Mexico for BP's North American customers. Jabil also is reported to have assembled modules for BP in Poland.

PHOTO CREDIT: SUNPLUGGERS.COM
Trade show visitors peruse modules
from Norway's Renewable Energy Corp.

Canadian Solar: Although headquartered in Canada, the company has conducted manufacturing at plants in China. It recently opened a new headquarters in Kitchener, Ontario, and announced plans to establish a manufacturing operation in the province that it said would employ as many as 500 people. The site has not yet been announced.

Evergreen Solar: The company has its headquarters at Marlborough, Mass., and a manufacturing plant in Devens, Mass., the former site of an Army base. Evergreen also has a joint operation based in Germany, a company called Sovello, in which it is partners with the large German solar firm Q-Cells and Norway's Renewable Energy Corp. After its Massachusetts plant opened, noise complaints were lodged and the company began making costly modifications. Last year, Evergreen, which had planned to expand its manufacturing operations in Massachusetts, announced it was opening a module plant in China with the aim of cutting manufacturing costs.

First Solar: The company is based in Tempe, Ariz., and has been expanding a manufacturing operation in Perrysburg, Ohio. First Solar is one of the largest solar manufacturers in the world, if not the largest. The majority of its modules are manufactured outside the U.S. It has plants in Malaysia and Germany, and last year announced plans to open a factory in France. First Solar's thin-film modules have been more commonly used in larger-scale solar power plants than on homes or small businesses.

General Electric: This mega-corporation obtained what was left of  the small Delaware solar company AstroPower after it went bankrupt in 2004. Although GE's entry into the solar business was heralded as an affirmation of the developing industry's validity, GE never became a major player. It sold its Delaware solar operation recently to Motech Industries of Taiwan, which does have a significant industry presence. A limited number of GE-branded modules may still be available.

Kyocera Solar: This company's parent is based in Japan, with a U.S. solar subsidiary based in Scottsdale, Ariz. Kyocera has announced plans to open a new module manufacturing plant in San Diego in 2010. It produces solar cells and assembles modules in Japan and also has solar module assembly plants in Tijuana, Mexico (for the U.S. market); the Czech Republic (European market); and China (Chinese market).

Mitsubishi Electric: The Japan-based company produces solar modules in Japan and is part-owner of a solar manufacturing plant in Portugal.

PHOTO CREDIT:
SUNPLUGGERS.COM
A display highlighting a
SunPower monitoring
system.

Motech Solar: This is a division of Motech Industries, based in Taiwan, and is a major producer of silicon-based solar cells. Such cells are used in modules commonly purchased for residential and small-business solar arrays. Motech recently bought a module assembly plant in Newark, Del., that had been operated by General Electric.

Renewable Energy Corp.: The company, based in Norway, produces silicon wafers and solar cells in Norway and assembles modules in Sweden. A division of the company, REC Silicon, produces polysilicon, a raw material for the manufacturing of solar cells, at plants in Moses Lake, Wash., and Butte, Mont.

Sanyo Solar: Based in Japan, the company manufactures silicon ingots and solar wafers at a new plant in Salem, Ore. It makes solar cells in Japan, and assembles solar modules in Mexico, Hungary and Japan. It also expects to build a second U.S. plant.

Schott Solar: The company is based in Germany and has production facilities in Germany, the Czech Republic, the U.S. and Spain. It closed a manufacturing plant in Billerica, Mass., in 2009 and opened a new one in Albuquerque, N.M. In late 2009, the company announced that rapid expansion was continuing at its New Mexico plant and that manufacturing would move to a round-the-clock schedule. The company has been awarded a $33 million federal tax credit for U.S. manufacturing expansion.

Sharp Solar: The solar firm, one of the largest in the world, is part of the giant Japan-based electronics company. It produces solar equipment in Japan and at a manufacturing plant in Memphis, Tenn., which opened in 2003. It also recently started a manufacturing operation in Wrexham, Wales, for the European market.

Siliken Renewable Energy: Based in Spain, Siliken also assembles solar modules in the Canary Islands and has a new solar-module assembly plant in San Diego. Some solar installers in the San Diego area obtain modules directly from the factory there. The company says it is "currrently immersed in a national and international expansion process."

SolarWorld: Based in Germany, SolarWorld operates a solar manufacturing complex in Hillsboro, Ore., through a U.S. subsidiary. It also operates the Camarillo, Calif., plant formerly occupied by Shell Solar. In Oregon, where it has been expanding, the company said last fall, "The addition of module assembly is coming sooner and in greater capacity than the company initially planned." The company has been awarded about $82 million in federal tax credits for U.S. manufacturing expansion.

Suniva: A startup that originated at the Georgia Institute of Technology’s University Center of Excellence in Photovoltaics, the company has its headquarters in Norcross, Ga. It has been rapidly expanding its production of solar cells there and plans to open a second solar-cell manufacturing plant in Michigan. Suniva manufactures high-efficiency monocrystalline cells used in solar modules; it has been branding modules that use its cells with the trademark "Powered by Suniva."

SunPower: The company has its headquarters in San Jose, Calif., but has manufactured its monocrystalline solar modules in the Philippines and Malaysia. Last year it signed an agreement with Jabil Circuit Inc. to manufacture and assemble modules in Mexico for the U.S. market. SunPower was also said to be considering a new manufacturing site in the U.S. During 2009, more California solar installations used SunPower than any other brand, according to data obtained from the California Solar Initiative.

Suntech: The company is the leading solar manufacturer in China and one of the largest in the world. It was identified last year as the supplier of the Andalay brand solar modules offered by Akeena Solar at Lowe's stores. Suntech has announced plans to establish a manufacturing facility in Goodyear, Ariz., near Phoenix.

Uni-Solar: This is the brand name of products produced by United Solar Ovonic, part of Energy Conversion Devices, which has its headquarters in Auburn Hills, Mich. It laid off workers last year at its manufacturing operation in Greenville, Mich., where it has produced flexible solar materials. Uni-Solar products are generally used as building-integrated photovoltaics, or BIPV, meaning they are combined with roofing materials and the like, and have been less commonly used in module form. One of its products has recently found an unexpected use as an energy producer at solar landfills. The company recently announced plans to open a plant in France.

Yingli Green Energy: Headquartered in China, the company recently announced that it is scouting sites for a new manufacturing plant in the U.S. Yingli has been awarded $4.5 million in federal tax credits to help establish its manufacturing operation in the U.S.

Michael Balchunas, a free-lance writer, is a former editor and reporter at newspapers, including the Los Angeles Times and the Hartford Courant. He purchased his first residential solar-electric system in 2003.