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U.S. green energy manufacturing is mostly assembled from foreign parts

Tax breaks aimed at rewarding homegrown goods also benefit foreign companies that assemble their green energy products on American soil. How dependent is the U.S. on imported green energy materials?

By Katherine ButlerThu, Apr 22 2010 at 5:36 PM EST
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XXX: Wind turbines near Palm Springs, Calif. (Photo: caveman/Flickr)
 
“Made in America” is a proud tag affiliated with many products. But as more and more items travel from overseas to the United States, there has been a serious decline in products actually constructed in America. It looks like green products are following the same trend. The New York Times reports that much of green manufacturing is merely assembled in America, despite an initiative by the Obama administration to offer tax breaks for completely homemade green goods.
 
President Obama has offered tax credits to green companies interested in generating domestic production. However, a loophole allows assembly plants to qualify for the credits. Consequently, countries such as China, Spain and Japan have set up assembly shops in America using green products imported from their countries. For instance, two giant Chinese companies, Suntech Power and the Yingli Green Energy Holding Company, have announced plans for a plant in Phoenix. 
 
Tom Dyer is vice president for marketing and government policy for Kyocera Solar, a Japanese company that will assemble solar panels in San Diego from imported Japanese materials. As Dyer told the NY Times, “The act says that if you assemble in the United States, then you comply. That is what we are doing, and that is what a lot of people are doing.”
 
Still, some American companies are taking advantage of this initiative. SpectraWatt is a New York spinoff of Intel. This company recently started production of solar cells at a New York plant, making a component of solar panels that is often imported. Further, Spanish-owned Gamesa North America is making blades and nose cones for its wind turbines in Pennsylvania. Experts are optimistic that efforts like this will catch on because clean energy is seen as an excellent opportunity to revive homegrown manufacturing. 
 
Despite these hopes, fewer than 200 factories in the United States are devoted to green production, in turn employing no more than 15,000 workers, according to the NY Times. Ultimately, assembly-only plants in America are doing little to revive the economy. As reported by the NY Times, fewer than 500 applications have been filed for the tax breaks. What’s more, if these applications were approved, they would add only 75,000 green manufacturing jobs to the country.
 
Consequently, some Democratic senators want the incentives restricted to American-owned companies. They are lobbying Congress to change the law. Green manufacturing has taken off abroad, and some worry that the United States will become as dependent on foreign countries and companies for green energy as it is for oil. Phyllis Cuttino is director of the Pew Environment Group’s Global Warming Campaign, an advocacy organization. As she concludes to the NY Times, “We don’t want to swap our dependence on foreign oil for dependence on clean energy.”
 
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Related Topics: Alternative Energy, Green Energy

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anonymous
Tunisia Property 05/26/2011 06:41 AM

that's what great to listen too. Most American products are now with the tag "Made in china" which is rocking whole world.

anonymous
Brian Digital 02/11/2011 05:16 AM

It's good to see that we're approaching a point where renewable energy resources like wind turbines and Photovoltaic Solar Panels are becoming more mainstream for folks, and what better way to offer incentives for individuals to invest in these Green Energy Resources than to reward them financially?

The world certainly doesn't run on the sun and the wind, but it's still a helpful nudge to begin heading in that

anonymous
Megan 02/01/2011 14:12 PM

Manufactured foreign parts are common in the car industry. I found that it is difficult to find some parts as well. A friend told me about this place I could find discount Volkswagen parts.

anonymous
wholesale 10/28/2010 07:19 AM

I am very happy top see the President taking interest in the green energy manufacturing. You know it feels like heaven when you come to know that some official is taking interest for which you are struggling. i think this will have positive effects on the lives of American people. On one side they can purchase the green energy products cheaply and on the other side their will be the new jobs opening.
I think that president will have deep eye on the green energy issues so he will not let.... More

anonymous
fundiaries 08/30/2010 01:54 AM

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anonymous
johnkenedy 06/19/2010 04:39 AM

This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.

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