Qcells Georgia Factory Survives US Solar Policy Whiplash

The Qcells factory in Cartersville, Georgia, is a significant development for the US solar industry. The factory, which began its expansion in June, now brings the whole production process under one roof. This is a major milestone for the industry, as it aims to bring back domestic production of solar panels.

The factory's production process involves moving ultrathin slices of polysilicon through a series of machines and chemical baths to create the basic building block of a solar panel. The polysilicon is a key ingredient for solar cells, and the US is trying to bring back domestic production due to concerns over national security, labor practices, and job creation.

However, the US solar industry is facing challenges due to constant changes in US solar policies. The Trump administration has taken a stick approach, imposing new tariffs and minimum import prices on polysilicon. This move is intended to help US manufacturers compete with Chinese imports, which are now more expensive.

In contrast, the Biden administration has taken a carrot approach, offering tax credit bonuses for solar projects that use US-made panels. Qcells, a South Korean firm, has said that these incentives were a major reason they built their Cartersville plant.

The two policy approaches have the same ultimate goal, according to researcher Coco Zhang of the banking and investment firm ING. However, the constant changes in policies have caused whiplash for companies.

The new tariffs and price controls on polysilicon could help US manufacturers compete to supply the solar developments that remain. However, they could also drive up costs for developers, and "limited US supply means many will still depend on imports and face higher costs," Zhang said.

Despite the challenges, industry experts maintain that solar isn't going anywhere. It's still one of the cheapest sources of electricity at a time when energy demand is growing fast. Solar panels are also readily available, while gas turbines are backordered for years.

### Solar Industry Outlook

The short-term outlook is complicated for those buying solar panels. The phaseout of federal clean energy tax credits removed a major incentive to develop new solar projects. The Trump administration has also taken steps to cancel federal funding for clean energy projects and add new hurdles for solar and wind installations on federal land.

The courts have blocked or reversed some of those actions, but the delays add costs and uncertainties even for projects that do ultimately move forward. In the first quarter of this year, clean energy advocacy group E2 tracked nearly $13 billion in abandoned investments in solar, wind, and battery projects.

However, some $18 billion in new projects were announced as companies scrambled to meet the deadline of the expiring tax credits. While the new tariffs and price controls on polysilicon could help US manufacturers compete to supply the solar developments that remain, they could also drive up costs for developers.

### Industry Expert Insights

Industry experts maintain that solar isn't going anywhere. It's still one of the cheapest sources of electricity at a time when energy demand is growing fast. Solar panels are also readily available, while gas turbines are backordered for years.

Solar and storage made up 90% of new power added to the US grid in the first quarter of the year, according to the Solar Energy Industries Association. "We absolutely should make solar, right? Like it is the fastest deployed, lowest cost foreseeable," said solar manufacturing expert Ben Damiani, chief technology officer at Atlanta-based solar developer Cherry Street Energy.

"Solar will be, for the next hundred years, a good portion of our energy," Damiani added. The questions, experts agreed, aren't whether solar development will keep happening, but how quickly, how much it will cost, and who - and where - will make the solar panels.