I was reading with sadness about the decision by BP Solar to shut down the Frederick, MD manufacturing facility. As many of you may know, I worked for BP Solar and this facility was the first real large scale solar mfg facility in the United States. Solarex (bought by BP) perfected the use of polycrystalline silicon (vs. mono) and pioneered it at this facility. More importantly, BP Solar will keep the R&D staff and function — this is important because they are some of the best in the world.
- Solar is practically illegal in Michigan (see solar bill of rights here)
- US hasn’t had a manufacturing policy in years and I wouldn’t imagine why anyone with half a brain would mfg in the US when you can achieve such a low cost of mfg in Germany, China, Malaysia, etc
- US has to invest some time in this space to help elected officials understand the drivers of our cost cycle. In fact, labor is not the dominant COGS for solar PV (although it is not insignificant). The biggest drivers that the government could help with are:
- Fully automated plants (crystalline) costs about $2.5/Wdc or $2.5B for a 1,000 MW plant. So the government needs to match the 50% capex subsidy other governments provide as they have for battery mfg
- Property taxes can be a killer that local governments can help with
- Electricity prices. With our rising electricity prices, other governments offer $0.04/kWh
- Tax abatements. The Obama adminstration must be out of its mind when it suggested raising taxes on Corporations. We are one of the highest tax places in the World. Raise taxes on the rich and everyone else but for heaven sake we have to reduce corporate taxes by at least half in this country. Malaysia and others offer a 10 year tax holiday for new mfg.