How U.S. Tax Breaks Brought a Chinese Solar Energy Giant to Ohio
The Inflation Reduction Act restored American manufacturing jobs – and gave China an opportunity to extend its dominance in some clean energy technologies.
By Bloomberg News, October 29, 2024
Nestled among the corn fields of Pataskala, Ohio, Illuminate USA’s sprawling new solar factory is buzzing. Hundreds of freshly hired local employees are hoisting pallets, soldering equipment and inspecting their work as sheets of glass are transformed into state-of-the-art photovoltaic panels. They’re collecting hourly wages that start at double the state minimum. The factory has also delivered contracts to area electricians and suppliers.
Inside the plant, signs in both English and Mandarin admonish workers to clean up trash. Machine displays also toggle between the two languages. More than 100 Chinese nationals are on site working alongside more than 1,000 American colleagues, and bridging the language barrier requires lots of hand gestures and smartphone-enabled translation. Illuminate says much of this is temporary, and most of the Chinese workers will leave once the Americans are up to speed.
But long after they return home, Longi will continue to profit. The joint venture benefits from millions in economic development incentives and federal tax credits for domestic clean energy manufacturing. For its part, Longi avoids anti-China tariffs and deepens its foothold in one of the world’s fastest-growing solar markets.
Companies based in or linked to China are replicating the strategy across the US. They are building or planning to build at least a dozen plants with 30 gigawatts of module-making capacity, according to a Bloomberg review of public statements, filings and other documentation. All told, the facilities would be able to supply roughly three-quarters of today’s US panel needs.
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