3rd Biggest Solar Panel Maker in the Country Closes US Operations, Hightails it to China

[one...two...tree 2,762]

An article today on GOOD about the potential of renewable energy says, "every hour enough sunlight reaches the Earth's surface to meet the world's energy demands for a year." If only we could utilize such potential! Of course there are folks out there trying, but the solar business, it turns out, is still a tough business.

The New York Times reported today that Evergreen Solar, the third-largest manufacturer of solar panels in the U.S. is closing their American operations and hightailing it to China. Apparently, $43 million in assistance from Massachusetts taxpayers wasn't enough to keep Evergreen Solar's 800 jobs in the country. China, which just became the world's largest manufacturer of wind turbines, is apparently able to give much more support for solar ventures than the U.S. government.

So much support that the Obama administration has been muttering that China is violating the free trade rules of the WTO with all their state subsidies for renewables. (A big meeting between Obama and President Hu Jintao will take place this week and may be hugely significant for the development of clean energy.)

The issue, according to the Times, has to do with prices for solar panels dropping, hugely:

World prices have fallen as much as two-thirds in the last three years -- including a drop of 10 percent during last year's fourth quarter alone.

Chinese manufacturers, Mr. El-Hillow [Evergreen Solar's chief executive] said in the statement, have been able to push prices down sharply because they receive considerable help from the Chinese government and state-owned banks, and because manufacturing costs are generally lower in China.

Perhaps the U.S. government would like to rethink it's policy of subsidizing dirty energy like coal and oil and instead give a little love to the clean tech sector. Our environment could use the help and so could American workers.

http://www.alternet....ls_it_to_china/

[Gary and Alla 3,694]

another business TAXED out of the US. And I thought we could look forward to this technology to save our jobs. Nope.

FAIR TAX NOW!

An article today on GOOD about the potential of renewable energy says, "every hour enough sunlight reaches the Earth's surface to meet the world's energy demands for a year." If only we could utilize such potential! Of course there are folks out there trying, but the solar business, it turns out, is still a tough business.

The New York Times reported today that Evergreen Solar, the third-largest manufacturer of solar panels in the U.S. is closing their American operations and hightailing it to China. Apparently, $43 million in assistance from Massachusetts taxpayers wasn't enough to keep Evergreen Solar's 800 jobs in the country. China, which just became the world's largest manufacturer of wind turbines, is apparently able to give much more support for solar ventures than the U.S. government.

So much support that the Obama administration has been muttering that China is violating the free trade rules of the WTO with all their state subsidies for renewables. (A big meeting between Obama and President Hu Jintao will take place this week and may be hugely significant for the development of clean energy.)

The issue, according to the Times, has to do with prices for solar panels dropping, hugely:

World prices have fallen as much as two-thirds in the last three years -- including a drop of 10 percent during last year's fourth quarter alone.

Chinese manufacturers, Mr. El-Hillow [Evergreen Solar's chief executive] said in the statement, have been able to push prices down sharply because they receive considerable help from the Chinese government and state-owned banks, and because manufacturing costs are generally lower in China.

Perhaps the U.S. government would like to rethink it's policy of subsidizing dirty energy like coal and oil and instead give a little love to the clean tech sector. Our environment could use the help and so could American workers.

http://www.alternet....ls_it_to_china/

The government should help ALL business by eliminating TAX on ALL business. It only costs individuals to tax business.

[Usui Takumi 1,562]

another business TAXED out of the US. And I thought we could look forward to this technology to save our jobs. Nope.

FAIR TAX NOW!

The government should help ALL business by eliminating TAX on ALL business. It only costs individuals to tax business.

Do you think that will save the situation given the operating cost differences between the US and China and the large Chinese subsidies?

[Dan J 277]

another business TAXED out of the US. And I thought we could look forward to this technology to save our jobs. Nope.

FAIR TAX NOW!

The government should help ALL business by eliminating TAX on ALL business. It only costs individuals to tax business.

They don't completely escape US taxes if they have any part of the business operation in the US. But this has nothing to do with taxes.

Factory labor in China costs less than $1 per hour on average, for the same in the US, you are spending over $20 per hour. By moving to china, even though you would add additional shipping costs, your labor costs have been cut to 1/20th of what they were.

This is not going to last forever, Chinas wage inflation is somewhere around 10-15% per year. But the jobs wont be coming back to the US, instead they will be outsourced for China to another low wage country.

[lostinblue 1,989]

A kwh of industrial electricit­y in China cost just over $0.015/kwh。In California $0.148/kwh­. Electricity is the second highest cost behind labor for a mfg plant.

Here's what Obama's ''necessarily skyrocket' plan looks like for LA electricity rates

Remember when President Obama said his anti-global warming program meant "electricity rates would necessarily skyrocket"?

Well, he wasn't kidding one bit. He and his environmental extremist friends want to force the rest of us to use less energy and to get what energy we do use from "green" or "renewable" sources.

Want to see that approach applied on the local level? How about a 37 percent increase in your monthly light bill? That's what Los Angeles residents face under that city's version of the Obama approach, according to The Los Angeles Times:

"The Los Angeles Department of Water and Power is planning to boost the electricity bills of its customers by 37% over the next four years as part of its effort to cover steadily rising costs.

"Officials with the city utility divulged their plans Thursday as the City Council's Energy and Environment Committee debated Mayor Antonio Villaraigosa's plan for boosting rates to help pay for renewable energy. Villaraigosa is seeking a 21% increase over the next year. That effort will be followed by other rate hikes by 2014, however."

And guess who is right there helping Villaraigosa hike Los Angelenos' electricity bill by a third?

"Thursday's meeting took place an hour after former Vice President Al Gore appeared with Villaraigosa via satellite in support of the mayor's plan, which would help the mayor meet his goal of ensuring that the DWP secures at least 20% of its energy from renewable sources by Dec. 31," the Times reported.

I wonder if the Times or any other journalists happened to ask either Gore or Villaraigosa how much the former vice president stands to make on deals like this.

Go here to read the rest of the Times report.

Read more at the Washington Examiner: http://washingtonexaminer.com/blogs/beltway-confidential/here039s-what-obama039s-039039necessarily-skyrocket039-plan-looks-la-elect#ixzz1BMJpQPtp

Barry is sending MFG jobs packing as fast as he can.

[Hilarious Clinton 452]

Chinese slave labor sure does pay.

[Danno 1,228]

So tell me, how's this Green economy working out for us?

Obamer actually bet our economic revival on it.

[Ban Hammer 13,355]

A kwh of industrial electricit­y in China cost just over $0.015/kwh。In California $0.148/kwh­. Electricity is the second highest cost behind labor for a mfg plant.

10.81¢ x kWh used, 17.89¢ x kWh used between 3pm and 8pm Monday through Friday

the above is the rate we're paying. let's see how cali residents would like matching rates.

[Hilarious Clinton 452]

5.7¢/kWh here

From my front yard I can see the steam rising from the cooling towers of our commercial nuclear power plant. Goooooo Nuclear!

We also have hydro and wind. Gooooo energy diversity!!!

[Ban Hammer 13,355]

5.7¢/kWh here

From my front yard I can see the steam rising from the cooling towers of our commercial nuclear power plant. Goooooo Nuclear!

We also have hydro and wind. Gooooo energy diversity!!!

i've lost any empathy for cali when their energy is as cheap as that listed.

[The_Dude 1,142]

I don't have a bill handy to look up rates, but I did find this table of average rates, by state and sector.

http://www.eia.doe.gov/electricity/epm/table5_6_b.html

Guess I'll have a look to see how that compares to reality when I get home.

[luckytxn 2,264]

I again was driving south from Dallas to home in Houston area and as usual I see many trucks coming northward with parts for the windmills. They come from the ship channel where ships unload the parts and they all come from China. The Feds subsidize heavily that industry and on top of that give huge tax benefits. The money flows to China where everything is subsidized to a point but they force their workforce pay low and have few safety rules for their workers and little environment rules for businesses. They also have no ISO certification they have to worry about. It is very hard for a American business to compete with them. China makes a killing from us and that has enabled them to amass huge money reserves that they plow into buying our debt for monetary security.

[Hilarious Clinton 452]

I don't have a bill handy to look up rates, but I did find this table of average rates, by state and sector.

http://www.eia.doe.g...table5_6_b.html

Guess I'll have a look to see how that compares to reality when I get home.

I just looked on my city's website. They are also my utility company,

[Dan J 277]

I again was driving south from Dallas to home in Houston area and as usual I see many trucks coming northward with parts for the windmills. They come from the ship channel where ships unload the parts and they all come from China. The Feds subsidize heavily that industry and on top of that give huge tax benefits. The money flows to China where everything is subsidized to a point but they force their workforce pay low and have few safety rules for their workers and little environment rules for businesses. They also have no ISO certification they have to worry about. It is very hard for a American business to compete with them. China makes a killing from us and that has enabled them to amass huge money reserves that they plow into buying our debt for monetary security.

Some of them are American businesses, they just have manufacturing operations in China. I assume when you said American business, you mean one that has all its operations in the US.

[luckytxn 2,264]

Some of them are American businesses, they just have manufacturing operations in China. I assume when you said American business, you mean one that has all its operations in the US.

I did. There are a couple of American companies that make these things and the one in the OP was a big one but could not compete with the ones that decided to have them made by the Chinese as to price. This happens to many American companies but these things are heavily subsidized by our taxes and they get other breaks also to insure they make a profit. I understand that companies have to try to compete among themselves and do what they have to do but this is a time when we should say to them if they want our tax money or tax breaks they have to use American manufacturers or no money or breaks. Then it is up to them if they want to accept the deal. We have to buy the Chinese made ####### if we want cheap stuff at Wal Mart but we don't have to send our tax money there.