Strong American solar manufacturing is essential for job creation, energy dominance, and national security.
The Defend Solar Manufacturing USA Alliance educates policymakers on the conditions facing U.S. solar manufacturers.
The Defend Solar Manufacturing USA Alliance educates policymakers on the conditions facing U.S. solar manufacturers.
A robust American solar manufacturing industry is essential for creating good-paying jobs, ensuring American energy dominance, and protecting our national security.
President Trump’s 2018 Section 201 tariffs and the pivotal 45X manufacturing tax credits — established by the Inflation Reduction Act of 2022 — have been transformative for the sector. These strategic policy initiatives have not only accelerated remarkable industry growth but also have made large-scale solar manufacturing viable on U.S. soil.
Today, however, China is violating our trade laws and using loopholes in our tax code to try to put American solar manufacturers out of business. Unless Congress and the Trump administration stop them, companies with ties to the Chinese Communist Party will pocket tens of billions of American tax dollars intended to support American manufacturing jobs.
Lawmakers must defend American solar manufacturing and force China to play by the rules.
“The real issue is that if you’re spending hundreds of millions or even billions of dollars of American taxpayer money on solar panels that are made in China, number one, you’re going to make the economy dirtier. We should be making more of those solar panels here in the United States of America… a lot of them are being made overseas in China, especially the components that go into those solar panels. So if you really want to make the environment cleaner, you’ve got to invest in more energy production.”
– Vice President JD Vance
The U.S. solar industry is creating hundreds of thousands of good-paying jobs with potential for massive growth. Already, the U.S. solar industry employs more than 250,000 people across the solar supply chain. A recent report shows solar power made up 84% of new U.S. electricity capacity in 2024, the largest annual growth of any energy technology in over two decades. And the potential to exponentially grow this industry is huge: if all U.S. developers sourced 55% of their manufactured solar goods domestically, the solar industry would support 900,000 American jobs by 2035.
However, this future is in serious jeopardy. Chinese companies, backed by the CCP, are actively manipulating the global solar market – dumping solar panels often made with forced labor into the American market at depressed prices to drive American manufacturers out of business. American solar manufacturers have been forced to file a petition with the U.S. Commerce Department and U.S. International Trade Commission asking them to enforce our antidumping laws against China’s illegal conduct. Without robust trade enforcement to halt China’s strategic assault on our solar energy sector, U.S. manufacturers will struggle to stay afloat.
To make matters worse, Chinese companies are increasingly exploiting loopholes in critical federal tax credits intended for American solar manufacturers to pocket more than $125 billion of U.S. taxpayer money for themselves. Unless these loopholes are closed, American taxpayers will end up subsidizing the very companies that have been actively and aggressively working to put American solar companies out of business for the last 10 years.
With solar expected to make up 40% of American energy output by 2035, the U.S. must have a strong domestic solar manufacturing base to ensure our energy dominance.
By building a successful, secure domestic solar industry, the U.S. can break from its reliance on foreign energy sources — reducing our vulnerability to supply disruptions. Dominance is within our grasp: the U.S. increased our solar production by 75% in 2024; with a fair playing field, our solar manufacturers can continue to create more jobs here at home, creating energy right where it’s being used.
We cannot leave this critical part of our energy future in the hands of a single foreign adversary. We need a homegrown solar supply chain and to stop China’s attacks on America’s domestic solar manufacturing base.
Protecting the U.S.’ strategic energy interests means it is essential that we thwart China’s efforts to destroy America’s domestic solar manufacturing base. Solar manufacturing is a key battleground in the strategic competition between the U.S. and China, and we must not allow China to turn its foothold into an outright monopoly of this critical energy technology. Just as our current reliance on imported petroleum is illogical, so too is depending on a foreign adversary for our energy requirements.
Close 45X Tax Credit Loopholes: Congress must protect our taxpayer dollars to ensure that Chinese companies and other foreign entities of concern cannot take advantage of the 45X advanced manufacturing tax credits intended to boost American solar manufacturing. Every American taxpayer dollar should support American workers and businesses, not the CCP’s monopoly agenda.
Strengthen Domestic Content Rules: The Trump administration has an opportunity to turn the tables on the CCP by tightening the “domestic content” rules that determine how much of a solar panel must be made by American workers to benefit from American tax dollars.
Enforce Anti-Dumping Measures: It is critical that the government enforce our existing trade laws. The Commerce Department and U.S. International Trade Commission must follow the facts and enforce the law in the antidumping cases filed by the American Alliance for Solar Manufacturing Trade Committee.
December 12, 2024 Press Release
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