Rift With China Clouds Solar Industry’s Future

It’s been a banner year for solar energy. The United States is on track to install a record number of solar power systems — thanks in large part to low-cost solar panels from China. That’s been challenging for American manufacturers, and federal officials have put trade tariffs on Chinese panels.

Things look busy at the SunPower solar manufacturing plant in Silicon Valley. Workers are screwing frames onto shiny, 6-foot solar panels as they come off the line.

This plant has a long list of notable visitors — governors, lawmakers, federal officials. It’s because SunPower is a top supplier — and because there aren’t many solar plants left to visit. “It’s going to require being lonely to be one of the winners, but it’s unfortunate that there aren’t many American solar companies,” says Tom Werner, the company’s chief executive officer.

He says the growing market for solar has attracted competition. Chinese manufacturers scaled up quickly and in just four years, solar panel prices fell 75 percent. “The economics have gotten way, way more challenging,” Werner says. “Difficult for some companies to make it.”

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