A new report into the state of the U.S. solar industry shows the sector is holding its own in a global market dominated by China, with local solar firms ending the year 2010 with a positive trade balance to the tune of $1.9 billion.
GTM Research’s U.S. Solar Energy Trade Assessment 2011 (PDF), commissioned by the Solar Energy Industry Association (SEIA), found America’s solar manufacturers experienced record growth in 2010 as the industry evolves and begins to focus on exporting stock components, such as photovoltaic (PV) polysilicon, and other capital equipment used to make finished solar products.
In 2010, exports of solar (PV) materials – primarily to China and Germany, the world’s biggest producers of solar panels – totalled more than $5.6 billion, while U.S imports of solar products, mainly from China and Mexico, totalled $3.7 billion.
According to the report, the U.S. was a net exporter of solar products to China last year by more than $240 million.
The global solar power shift to China will continue to alter business practices, and innovation will play a key role in who succeeds in the new paradigm, according to Shayle Kann, Managing Director of Solar at GTM Research.
“Until now, the finished module was the industry’s benchmark for judging the health of the PV manufacturing sector. However, the PV market is more complex than meets the eye. As our research shows, the U.S. remains a focal point in global PV manufacturing, thanks largely to the domestic manufacturing of feedstock and manufacturing equipment.”
The report also reveals the benefit of the domestic solar power market. Solar installations contributed $4.4 billion to the U.S economy last year, with beneficial flow-on “soft costs” – such as planning permits, site preparation work, and financial services, making up nearly 50 percent of total solar revenue.
