How the West lost its lead in solar
The seven decades since tell the remarkable story of how America squandered its invention of solar photovoltaics, or PV, to the point where it will never recover. As recently as 2010, a small town in central Michigan was the world’s biggest producer of solar polysilicon. Nowadays, the US is barely in the game, and more than 90% of the total comes from China. That country’s clean-technology exports “threaten to significantly harm American workers, businesses and communities,” President Joe Biden said May 14, announcing 50% tariffs on Chinese solar cells.
Washington blames China’s dominance of the solar industry on what are routinely dubbed “unfair trade practices.” But that’s just a comforting myth. China’s edge doesn’t come from a conspiratorial plot hatched by an authoritarian government. It hasn’t been driven by state-owned manufacturers, subsidized loans to factories, tariffs on imported modules or theft of foreign technological expertise. Instead, it’s come from private businesses convinced of a bright future, investing aggressively and luring global talent to a booming industry — exactly the entrepreneurial mix that made the US an industrial powerhouse.
The fall of America as a solar superpower is a tragedy of errors where myopic corporate leadership, timid financing, oligopolistic complacency and policy chaos allowed the US and Europe to neglect their own clean-tech industries. That left a yawning gap that was filled by Chinese start-ups, sprouting like saplings in a forest clearing. If rich democracies are playing to win the clean technology revolution, they need to learn the lessons of what went wrong, rather than just comfort themselves with fairy tales.
Source: David Fickling in riproaring form at Bloomberg