DoD US Only Solar Panel Requirement Might Mean More Chinese PV Companies Setting Up North American Facilities

There is still debate over how much the 7 Jan 11 authorization law forcing the US Department of Defense to only buy US-made solar panels will affect Chinese PV sales. First question is how many potential sales have been derailed. My sense from talking to Chinese PV companies is selling to the DoD was not part of their North American solar market sales strategy.

What is more clear is which Chinese solar companies are benefiting. The law won't affect Suntech since they have a module plant in Arizona. Even if this law doesn't have a massive direct effect on Chinese PV sales to the United States, it serves as a warning that similar protectionist laws might be passed in the near future. As Evergreen shifts its manufacturing from Massachusetts to Wuhan, citing cheaper labor and property and better government subsidies, it initially seemed odd that Suntech was moving in the opposite direction. Both companies said that they had high hopes for an expansive North American solar market and therefore it was worth putting up with higher labor, land costs. Seeing this DoD law as possibly the first of many restrictive US-only solar module laws, many more Chinese PV might re-consider following Suntech's lead and set up US manufacturing facilities.