Washington (HRNW)- Donald Trump’s tough policies against Chinese-linked solar companies have dealt a severe blow to investment in new solar factories in the United States. Several major US solar companies, banks and insurance companies are avoiding business with US solar factories that have ties to China.
The report says that at least half a dozen new US solar factories have been affected by this uncertainty, while these factories are related to projects that were initially established by Chinese companies, which has put more than a third of US solar production capacity at risk.
Sunrun, a major US residential solar installation company, is also now distancing itself from Chinese suppliers. According to Keith Martin, a lawyer specializing in the renewable energy sector, the new restrictions are severely affecting the financing of solar and battery storage projects.
Experts say the Trump administration’s policy is part of a broader strategy to push China out of the US market and reduce green energy subsidies, but it could also have negative effects on US manufacturing, jobs and electricity generation.
According to energy experts, the US needs to rapidly increase electricity generation due to the growing demand for artificial intelligence (AI) data centers, and solar energy and battery storage are considered the fastest and most effective solutions for this purpose.
Aaron Halimi, CEO of Renewable Properties, a company that builds small-scale utility projects in the US, has warned that the new restrictions could further increase the cost of electricity in the US.
China currently controls about 80% of the world’s solar equipment manufacturing. Chinese companies invested billions of dollars in the US after former President Joe Biden’s 2022 climate law.
According to the US Solar Industry Association, nearly $43 billion in investment has been announced so far, which is expected to create more than 48,000 jobs.
The new legislation caps Chinese companies’ ownership of factories receiving US subsidies at 25 percent, while also banning “effective control” of China. The US Treasury Department has yet to issue full guidance on the rules, which has led to uncertainty in the industry.
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