Robinson is an Associate Fellow at the Center for Strategic and International Studies and a Fellow with the Clean Energy Leadership Institute.
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The Biden Administration&#;s green industrial policy was put to the test last year. Even with the support of subsidies and tariffs, U.S. solar manufacturers struggled to compete with the flood of cheap solar panels pouring out of China into the global market. While some argue that the U.S. should loosen restrictions on cheap Chinese solar panels to accelerate renewable energy deployment, this approach is unsustainable.
was a bumpy year in the race to deploy renewable energy. In the U.S., rising interest rates, delayed guidance for tax credit eligibility, and a project permitting process desperately in need of reform tempered deployment. However, solar emerged as a bright spot, accounting for three-fifths of new renewable electricity capacity worldwide. According to the International Energy Agency, solar is the only renewable technology being deployed at a rate to meet net zero by targets.
While this trend is good news for the climate, it is better news for China. Just a decade ago, China supplied 40% of the world&#;s solar panels. Today, its global market share is over 80%, a near monopoly.
It&#;s no accident that China is so well positioned to capitalize on this solar boom. In the mid-s, China&#;s government invested hundreds of billions of dollars into developing its renewables manufacturing sector, focusing on what officials have since dubbed &#;the new three:&#; electric vehicles, lithium batteries, and solar cells.
Highly integrated supply chains, innovative manufacturing techniques, and consistent government support aided the growth of China&#;s solar industry. As did its massive domestic market&#;China boasts nearly four times the installed solar capacity of the U.S., which is the world&#;s second-largest market. However, the Chinese solar industry&#;s ambitions extend beyond satiating the globe&#;s most power-hungry economy, China. Solar exports from China increased 34% in the first half of compared to the previous year.
China&#;s solar manufacturing industry has played a crucial role in accelerating the global deployment of renewable energy. But this green patina obscures a darker truth.
Read More: Rooftop Solar's Dark Side
The connection between the Chinese solar industry and the Chinese Communist Party&#;s persecution of the Uyghur ethnic minority in Xinjiang is well-documented. Between one-third and one-half of the world&#;s solar-grade polysilicon is produced in the Xinjiang Uyghur Autonomous Region. The U.S. has limited direct solar imports from China through policies such as the Uyghur Forced Labor Prevention Act and tariffs established to protect American industry from dumping and non-competitive practices. Yet, many solar modules assembled in Vietnam, Thailand, and Cambodia, the largest sources of U.S. solar panels, use Chinese components. Today, a majority of solar modules produced globally can be traced to the Uyghur Region.
While Chinese solar panels may produce carbon-emissions-free energy, producing these panels is not so environmentally friendly. Coal, the dirtiest fossil fuel, accounts for a majority of China's electricity generation. In Xinjiang Uyghur Autonomous Region, where the most energy-intensive step in the solar panel manufacturing process, polysilicon refining, is concentrated, coal accounts for 77% of power generation. As a result, a recent study found that solar panels manufactured in China produce 30% more greenhouse gas emissions than if this supply chain was reshored to the U.S.
Furthermore, China&#;s continued solar dominance jeopardizes the security of the U.S. and its allies. In , the European Union relied on Russia for nearly half of its total natural gas consumption. The EU paid a heavy price for placing its energy security in the hands of Vladimir Putin. While some environmental advocates argue that renewable energy cannot be weaponized like fossil fuels, this is deeply naïve. Today, Europe is the destination for more than half of all Chinese solar exports. Once again, our European allies are selling their security for cheap energy. The U.S. must not make the same mistake. Though the trade dynamics of solar modules and fossil fuels differ, overwhelming reliance on any one country, particularly a hostile country, poses a real security threat.
Critics of the Biden Administration&#;s green protectionism argue that eschewing cheap Chinese solar panels slows the energy transition. This may partly be true. Yet, while Chinese solar panels are 20% cheaper than their American equivalents, this number is not the difference between the success and failure of the U.S. solar energy industry. High interest rates and the permitting quagmire must also be addressed.
Ending China&#;s dominant position in the global solar market is not possible. It benefits from a massive head start. However, the U.S. should work to loosen China&#;s chokehold. The domestic clean energy manufacturing incentives in the Inflation Reduction Act are a start. The Biden Administration can also re-impose tariffs on Chinese-made solar components routed through Southeast Asian countries. Furthermore, it can pressure the European Union and other allies to take a stronger stand against Chinese solar companies&#; anti-competitive behaviors and human rights violations. Finally, the Biden Administration should work with allies like India to strengthen their solar manufacturing capacity, taking advantage of lower labor costs.
This strategy may slightly slow the deployment of solar energy. However, the alternative&#;allowing China&#;s global solar monopoly to continue&#;is simply too high of a price to pay.
Many of the most successful solar panel manufacturers in the world come from China, including LONGi, Jinko, Trina, and Canadian Solar (despite the name). These brands produce a sizable portion of the solar panels used in the United States, and are used in everything from huge utility-scale solar installations to small home rooftop solar panel systems.
To be clear up front, solar panels from the companies listed below are excellent performers with at least 25 years of expected life. As a rule, Chinese solar panels are as good as any others on the market. China produces around 80% of all solar panels, so like any product, there are cheaper offerings from less well-known companies.
The key is making sure you choose a great solar installation company who can offer you excellent service and products, including the best Chinese solar panels.
There&#;s more to learn about Chinese solar panels, so read on!
About 80% of all solar panels and materials are produced in China.
Many solar companies from around the world either manufacture in or source parts from China.
Determining a solar panel&#;s country of origin can be tricky! Some American brands. manufacture overseas, while some Chinese brands (such as Jinko Solar) have big factories here in the U.S.
Chinese solar panels tend to be slightly cheaper than other brands of solar panels.
Chinese solar brands were affected by solar tariffs imposed in and , but still maintain significant market share.
At present, about 80% of all solar panels and their source materials are produced in China. Chinese solar panels reached this dominant position through a combination of factors.
First, China made a bet big on renewable energy. Years of massive investment in clean energy in general, and solar in particular, propelled China into becoming the world&#;s biggest solar power producer.
China alone now accounts for nearly a third of global solar module demand; much of it used for mega-sized solar power plants and even giant floating solar farms.
Second, China benefited (and continues to benefit) from its huge manufacturing base and low production costs. As with most electronics and industrial equipment, China is also a cost leader in the solar industry.
Third, Chinese solar panel manufacturers leveraged their domestic solar energy boom and massive government support to dramatically increase their scale. This growth partially coincided with the - financial crisis, which left American companies struggling to compete. Chinese government backing during this time allowed its homegrown companies to capture global market share.
Now, Chinese solar panel manufacturers supply companies all around the world. It&#;s not unusual for solar companies in the United States to source parts from China. These companies will assess the products according to their own quality standards and sometimes sell them via their own (American) brand names.
Link to JM
It is also common in the solar industry for companies to be headquartered in one country but have manufacturing facilities in another.
The emergence of the global solar module supply chain (described above) means that identifying where exactly solar panels are from is not always straightforward.
Let&#;s look at American solar panel brand Solaria, for instance. They are headquartered in Fremont, California, and offer consumers sleek black solar panels backed by an excellent 25-year warranty. However, it only has limited manufacturing capacity here in the U.S., as the majority of its solar panels are produced over in South Korea.
Then there&#;s Canadian Solar. Its name suggests it's from the Great White North, but ironically enough, it&#;s very much a Chinese company, with nearly all of its modules manufactured in China!
If you're trying to get high-quality panels, look for a brand that meets the standards you expect from domestic companies. That doesn't mean that they can't or won't be made in China.
Not every product made by a Chinese brand is going to be cheaper than domestic ones. However, despite being subject to extra import duties and tariffs designed to prevent China from flooding the market with ultra-low-cost options, Chinese solar brands still generally offer more competitive prices.
The U.S. first approved anti-dumping and countervailing (AC/CVD) duties against imported Chinese solar cells (and modules that contain them) in . In response, many Chinese companies spent the rest of the decade moving manufacturing of these cells to other countries to avoid the duties.
In January , President Trump added a new 30% tariff on solar imports (on top of existing AC/CVD duties) that would step down over four years, and in , President Biden modified and extended those tariffs for another four years.
In mid-, the U.S. Department of Commerce launched a new AC/CVD investigation that would have added new tariffs to solar products from many of the countries Chinese companies now use as manufacturing bases. The investigation caused the companies to halt most of their imports of solar materials into the U.S., and President Biden responded by declaring a state of emergency and exempting imported solar products from possible new tariffs for 24 months.
The preliminary results of that investigation were released in December , with the Department of Commerce&#;s final determination to come later in . Once the 24-month exemption period ends, products from Chinese companies that operate in the four countries in question will be subject to new tariffs.
Also, in the summer of , the President signed the Inflation Reduction Act, which included new tax benefits to encourage domestic production of solar cells and modules and has already resulted in several announcements of new U.S. solar factories.
What a rollercoaster, eh?
Because of the tariffs, Chinese solar companies are now forced to sell their products at prices that are closer to companies that manufacture solar products in the United States.
Shortly after the tariffs were levied, Chinese company Jinko Solar announced it would build a manufacturing facility in Florida. The company now produces 400 megawatts (MW) of solar panels in the Jacksonville factory every year.
In early , LONGi Solar announced plans to build 5 gigawatts (GW) of solar manufacturing capacity in Ohio. When completed, the facility would be more than 11 times larger than the Jinko factory.
This new stateside manufacturing capacity will keep Chinese companies in the American solar marketplace for decades to come.
Get a cost estimate for the best Chinese and American-made solar panels
Here at SolarReviews, we assess brands based on various performance and value metrics. If you check out our list of the top solar panel manufacturers for , you will see that four of the ten are Chinese companies. Here&#;s a rundown of the Chinese brands on the list:
2nd place: Canadian Solar
5th place: Jinko Solar
6th place: JA Solar
10th place: Phono Solar
Every one of these brands scores high for value, generally coming in at the low end of the pricing spectrum while offering products that compete with all but the most efficient, latest technologies.
Two other major Chinese brands&#;LONGi and Trina&#;were left out of our top brands ranking in because of concerns about another supply chain problem that arose in late . The brands&#; products were being held in U.S. ports while officials investigated whether any solar panels contained materials from China&#;s Xinjiang region. Import of these materials is prohibited under the Uyghur Forced Labor Protection Act (UFLPA) due to concerns that slave labor is being used to produce raw solar materials there.
By March of , U.S. Customs and Border Protection had cleared many of the shipments in question, and the companies have restarted shipping new solar products into the United States. LONGi and Trina will be eligible for the top solar manufacturers rankings and are expected to place within the top 10.
Solar panels are a big investment, so it pays to do your research. But looking into every possible solar panel brand is usually not necessary.
The best first step is usually getting quotes from local solar installation companies and seeing which solar panel brands they carry.
All reputable solar installers in the United States will carry Tier 1 solar panels from reputable brands. Once you've seen the brands on offer, you can read customer reviews for solar panel brands.
If you're buying a panel produced in China, you're dealing with a range in quality that has nothing to do with the location, but the big brands mentioned in this article offer very high-quality products as a rule.
You may want to choose American-made solar panels over ones made in China to help support American manufacturing jobs, but if your main concern is getting the best bang for your buck, keep an open mind and compare several brands regardless of their origin.
Based on their excellent value rankings, Chinese-made solar panels definitely deserve a look.
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