U.S. LOSES SOLAR MAKER TO CHINA

A green loss here is a win for China
Derrick Z. Jackson, January 15, 2011 (Boston Globe)

"The total eclipse of 800 Massachusetts jobs by Evergreen Solar, as the firm shifts those jobs to China despite $58 million in state aid, shows just how fast the so-called green jobs manufacturing revolution is dimming. It belies any feel-good rhetoric…[by] President Obama…[and] should spur Governor Patrick and other governors to huddle with Obama on the viability of state funds for individual firms without a true national strategy on clean energy.

"Even if well spent, state aid and current federal tax incentives for solar manufacturing are dwarfed by manufacturing subsidies and cheap labor abroad. American investment in clean energy in 2009 was only about half that of China, according to a Pew report. The United States only ranks 11th among the G-20 nations in clean energy investment as a percentage of gross domestic product. Spain leads the way on that score, followed by the United Kingdom, China, and Brazil."

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"Evergreen’s announcement…that it will close its Devens plant came a day after Massachusetts Senator John Kerry lamented how China leapfrogged us to be the world’s largest solar manufacturer….[A]nalyst Christine Hersey of Wedbush Securities said that while Evergreen may have had unique, self-inflicted problems, the job cuts represent a universal dilemma. Any solutions must go far beyond protectionist tinkering, such as the federal “Buy American’’ provision enacted last week for military solar panel procurement, effectively banning Chinese-made panels…"

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"…The biggest US solar firms, like First Solar and SunPower, already outsource the bulk of their production to countries like Malaysia and the Philippines. Asian companies, fearing protectionism, are already dotting the United States with subsidiary plants. The bottom line…is that China makes at least half of the world’s solar panels…

"Solar industry promoters optimistically say we’re up to 25,000 US solar manufacturing jobs and will add 9,000 more this year. Massachusetts clean energy advocates say general industry employment remains on a rapid rise. Still, the closing of Evergreen is a loss here and a win for China. Whether it involves more massive incentives here or a miraculous negotiation on subsidies abroad, if Obama and Patrick want solar jobs made here in the US of A and an industry that is truly evergreen, there is no time to lose."