A provision in a military authorization law signed by US president Barack Obama on January 7, 2011, which requires the Defense Department to purchase only American-made solar panels, could benefit Taiwan-based solar companies that have set up manufacturing facilities in the US.
The new law also means that the US military is prohibited from procuring China-made solar modules, which account for more than a 40% share of the global photovoltaic (PV) solar module market. According to sources from the solar industry, the latest move by the US government is likely retaliation to China's generous subsidization of its solar industry and providing China-based solar manufacturers an arguably unfair advantage in the global marketplace.
Some China-based solar companies have already felt tougher entry barriers for setting up facilities in the US, the sources pointed out. However, the law will not impact China's Suntech Power and Yingli Green Energy since both the vertically-integrated companies have solar module plants within the US.
Taiwan's Motech Industries, Panjit, Sino-American Silicon Products (SAS) and Solartech Energy all have solar module businesses in the US, providing the US military market cost-effective and quality solar module options. Motech has sourced solar modules from General Electric (GE) and will distribute under its own brand for the US market. Panjit has completed a 200MWp solar module plant in Arizona and will soon begin production line installation.
SAS set up a solar module plant in Texas in 2010 to target system projects in the region. The company is reportedly in talks with the Texas state government for a 30-50MWp system.
Article translated by Willie Teng
