by Beth Margulies
PR Director, NECA
A story in yesterday’s New York Times announced that Suntech Power, China’s largest solar panel manufacturer, plans to open its first American plant near Phoenix in 2010, eventually employing upwards of 250 people.
Suntech Power Holdings could be the first company eligible under the new Renewable Energy Tax Incentive program which provides refundable tax credits and property tax reductions for manufacturers.
At Greenbuild last week, we heard about complications that arise from the fact so few of the products used in renewable power are manufactured in the U.S. Two major concerns are security and quality-control; another is putting Americans to work and supporting U.S.-based businesses.
However, these issues about overseas solar panel manufacturers weren’t the reason Suntech is opening a plant in Arizona. No, it all came down to shipping costs. From the article:
Roger Efird, a managing director of Suntech, said in a telephone interview that shipping costs were an important factor in the decision to put a factory in the growing American market. Solar panels, with substantial amounts of glass and aluminum, are heavy, he said.
“As the price of solar panels has reduced dramatically in the last 12 months, the shipping costs have become a larger and larger portion of the overall cost of getting these projects to market,” Mr. Efird added.
It’s good to know that the cost of solar panels is coming down enough that it’s becoming cheaper to produce them where they’ll be used rather than shipping across the world. The entire process becomes greener.