Short-sighted tariffs on solar panels would destroy jobs and environmental progress. Here’s how we can stop them.
A recent economic study revealed something extraordinary: Solar energy now accounts for more than 260,000 jobs across the United States, including one out of every 50 new American jobs. In New Mexico, employment in the industry grew by 54% in the last year alone. While solar’s positive environmental impacts are already well-known, the economic advantages are getting clearer.
But there's a storm brewing. A short-sighted political decision could decimate roughly a third of the nation’s solar employment—up to 88,000 American jobs. If the US government places trade barriers on solar panel imports, prices could skyrocket, destroying businesses and livelihoods. It's not too late to stop this dangerous move: Republicans and Democrats need to come together and act now to save American solar jobs.
This spring, a Georgia-based solar manufacturer petitioned the federal government to put tariffs and punishing new pricing requirements on imported panels. It’s unclear whether the actions—which would be aimed at protecting US firms from foreign competition—would really boost the manufacturers’ business. But one thing is clear: The tariffs could double the price of solar panels in the US.
Under a 1974 law, the President of the United States has the authority to make such a change in trade law, based on the recommendation of the International Trade Commission. There’s indication that the President is likely to apply the restrictions—in part to live up to campaign promises to appear tough on China and other manufacturing competitors, which produce many low-cost panels.
But the tariffs wouldn’t really hurt China. They would hurt American workers and their families. Unlike coal or nuclear, solar energy production is distributed across homes and businesses, so it puts thousands of people to work with dependable jobs in design, sales, installation, and finance with competitive wages. These are American jobs that can’t be automated or outsourced.
More broadly, solar tariffs would also hurt millions of Americans who would otherwise benefit from clean and affordable energy. Solar cuts carbon emissions and air pollution, reduces energy bills, creates more predictability with utility bills, and helps promote American energy independence. With an unprecedented spike in panel prices, we would lose many of these crucial benefits.
Political leaders on both sides of the aisle understand that this kind of protectionism doesn’t work. Back in 2002, when the US slapped similar tariffs on steel imports, the price of steel more than doubled, and US manufacturers started buying parts from overseas suppliers who could access cheaper metals. Many manufacturers moved overseas.
While both parties have championed solar for its economic, environmental, and consumer benefits, Republicans have long advocated against these kinds of protectionist tariffs. Conservatives are now speaking out against the possible trade restrictions on solar. As Tori Whiting of the Heritage Foundation recently put it: “tariffs meant to protect one industry can, and often do, have significant damaging effects on other domestic industries.”
New Mexico’s delegation in Congress should come out strongly against the tariffs. Thousands of families in this state depend on the solar industry. Senator Martin Heinrich has already led a bipartisan group in testifying against the tariffs before the International Trade Commission. Rep. Steve Pearce—our delegation’s sole Republican—has an opportunity to use his influence with the White House to stand up for the interests of his southern New Mexico district.
We all share the goal of boosting American manufacturing. There are plenty of better ways to bring solar manufacturing back to the United States. A start would be to extend the solar Investment Tax Credits, to launch policies that enhance the solar manufacturing supply chain, invest in R&D, or expand solar’s manufacturing engineering workforce.
People of all political persuasions can agree: Doubling solar prices would hurt consumers, workers, the environment, and economic growth. We should celebrate America’s 260,000-plus solar energy jobs— not threaten them.
America needs a clean, high-employment energy future. Solar can provide it.
--
Regina Wheeler is the CEO of SunPower by Positive Energy Solar. The company was recognized by SolarReviews in 2014 and 2015 for 100% customer satisfaction and over 2,500 solar installations completed throughout New Mexico.