California, USA -- A lot of energy has been devoted to the "Buy American" clause in a bill signed by President Obama last week that requires the Defense Department to buy U.S.- made solar panels. It's a sexy subject because it stirs passionate debates about fair trade and protectionism and how China's growing political and economic clout is scaring a lot of people.
But what really is the impact of this new law? Here is what Paula Mints, director of energy at Navigant Consulting, said during a webinar yesterday: “The military isn’t buying much, so does it really matter? Very little is actually produced here (in the United States), so it’s kind of a non-starter.”
The comment is a sobering reminder that the military, though a supporter of renewable energy, isn’t a major customer because most of the solar projects that will be built in the next few years will serve the private sector. Mints also raised an issue that will have more impact on the solar industry: manufacturing in the United States. Federal and state government has awarded billions of dollars in loans, grants and tax incentives in just the past two years to help many solar cell and panel makers set up factories. How will these efforts pan out and will the U.S. really bloom as a formidable manufacturing center?
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