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The Sun is Shining for the Solar Industry
November 29, 2010
There was a positive buzz in the air at the annual Solar Power International 2010 Conference and Expo, held in Los Angeles Convention Center on October 12-14, 2010. The solar market is exploding in the U.S., and it is anticipated that it will become the largest market in the world. By 2014, it is expected that the U.S. solar capacity will exceed the current leader, Germany, and it will play a significant part in the nation’s energy plan within the next 10 years.
U.S. solar revenues are up from 2009 by almost 40%, and 2010 is expected to be another breakthrough year. Feedback from the exhibitors indicated that the demand for solar panels is far exceeding the supply, and there is much talk about manufacturing expansion. The conference and expo mirrored the strength of the solar market. Attendance at the show was estimated to be 33,000, up from 27,000 in 2009. The number of exhibitors increased substantially from approximately 900 in 2009 to almost 1100 in 2010.
The real question lies in what effect this huge growth in the solar market will play in the U.S. economy. We know that there will be a large demand for solar panels for energy generation in the U.S., but will this translate into U.S. jobs? The largest portion of the price for solar panels is the modules. Currently, the largest producers of modules are China and Germany. One would question if this growth isn’t going to translate into just more manufacturing capacity overseas. The potential answer lies below.
The U.S. government is now offering incentives in the form of tax credits for people and companies that purchase solar components for energy generation. In order to get these tax credits, the components must have at least 40% U.S. content. The content rules dictate that 40% of the final product is made in the U.S. with U.S. materials. Since the modules are the largest single factor in the total cost of the panel, the modules may need to be manufactured in the U.S. in order to meet the requirements. This may put foreign manufacturers at a disadvantage compared to the companies producing in the U.S.
In talking with several module manufacturers, there is much activity geared toward adding manufacturing capacity within the U.S. The U.S. module manufacturers are adding production lines to existing plants, and also adding new manufacturing plants to meet the market demands. The biggest change, however, is that some foreign module manufacturers are planning to build module manufacturing in the U.S. to increase capacity, but also to address the tax credit issues. Many of these expansions are in the planning stages; some have already started.
What this means is that a new market is developing in the U.S. that will have a positive national impact. First, we will have a growing renewable energy source available that will help us reduce our dependency on oil and also help reduce carbon emissions generated from the coal-burning plants. Second, there will be increased job opportunities for skilled workers within these plants as the expansions continue. Finally, there will be new or additional opportunities for companies within the U.S. that provide support in the way of materials, equipment and services.
U.S. solar revenues are up from 2009 by almost 40%, and 2010 is expected to be another breakthrough year. Feedback from the exhibitors indicated that the demand for solar panels is far exceeding the supply, and there is much talk about manufacturing expansion. The conference and expo mirrored the strength of the solar market. Attendance at the show was estimated to be 33,000, up from 27,000 in 2009. The number of exhibitors increased substantially from approximately 900 in 2009 to almost 1100 in 2010.
The real question lies in what effect this huge growth in the solar market will play in the U.S. economy. We know that there will be a large demand for solar panels for energy generation in the U.S., but will this translate into U.S. jobs? The largest portion of the price for solar panels is the modules. Currently, the largest producers of modules are China and Germany. One would question if this growth isn’t going to translate into just more manufacturing capacity overseas. The potential answer lies below.
The U.S. government is now offering incentives in the form of tax credits for people and companies that purchase solar components for energy generation. In order to get these tax credits, the components must have at least 40% U.S. content. The content rules dictate that 40% of the final product is made in the U.S. with U.S. materials. Since the modules are the largest single factor in the total cost of the panel, the modules may need to be manufactured in the U.S. in order to meet the requirements. This may put foreign manufacturers at a disadvantage compared to the companies producing in the U.S.
In talking with several module manufacturers, there is much activity geared toward adding manufacturing capacity within the U.S. The U.S. module manufacturers are adding production lines to existing plants, and also adding new manufacturing plants to meet the market demands. The biggest change, however, is that some foreign module manufacturers are planning to build module manufacturing in the U.S. to increase capacity, but also to address the tax credit issues. Many of these expansions are in the planning stages; some have already started.
What this means is that a new market is developing in the U.S. that will have a positive national impact. First, we will have a growing renewable energy source available that will help us reduce our dependency on oil and also help reduce carbon emissions generated from the coal-burning plants. Second, there will be increased job opportunities for skilled workers within these plants as the expansions continue. Finally, there will be new or additional opportunities for companies within the U.S. that provide support in the way of materials, equipment and services.
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Meyer Tool & Manufacturing, Inc. has years of experience responding to global changes and the development of new technologies. As the U.S. ramps up the production of solar panels to meet increasing demands in the marketplace, Meyer Tool will become more involved in assisting with the design and manufacture of larger and more complex chambers and vessels necessary for companies to produce solar panels efficiently. Our goal is to provide our customers with top quality product at the lowest total cost of ownership. From project inception, Meyer Tool works with our customers to develop low cost solutions, using our many years of experience in design and manufacturing. We look forward to providing this service to solar manufacturers to meet their needs as they respond to the growth in demand
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Welding of Large Process Vessel
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