Chinese solar company, Suntech Power Holdings is not new to the U.S. Last May, the President toured the largest solar panel installation in America at Nellis Air Force Base in Nevada. There, Suntech solar panels cover 140 acres, generating up to 14 megawatts of electricity on the most productive days.
Suntech won that contract the same way it has reached the top of the fast-growing worldwide solar energy market.¬† That is by focusing on price and scale. Now, as the world’s largest solar panels supplier, it is increasing its stake in the U.S. market.
On November, in Beijing, the company announced its first U.S. manufacturing plant. The facility, which will be based in the Phoenix area, will commence operations by next October. The American market ‚Äúis on the cusp of greatness,” according to Steven Chan, U.S. president and chief strategy officer at the company. This development makes Suntech the first major Chinese renewable energy specialist to bring real factory jobs to the U.S.
Barack and solar panels at Nellis
The announcement coincides with President Barack Obama’s visit to China, which includes more focus on collaboration in renewable energy technologies. Suntech’s decision may reduce criticism from U.S. lawmakers concerned that low-cost facilities in China will dominate the market and establish new green production jobs before the U.S. has a chance to get off the mark. The decision to bring manufacturing here to the U.S. is being viewed by some as a positive sign of the important collaboration between American and Chinese in the green energy industry.
Suntech’s first U.S. factory will be modest by industry standards. When its doors open, it will have the capacity to manufacture 30 megawatts of solar panels each year, which is enough for around 7,500 household installations. The site will have the potential to increase production to 200 megawatts in the future.
The sales of U.S. solar panels peaked at 494 megawatts last year.  The effects of the recession have weakened sales this year.  Sales of solar panels are expected to climb to more than 1,000 megawatts, in the U.S. during 2010, predicts Steven Chan.  He believes that demand will be boosted by the effects of federal and state subsidies for renewable-energy installations.
Suntech decided on the Greater Phoenix location because of Arizona’s positive embrace solar power and research, says Chan. Arizona has a Renewable Energy Standard, which requires 15% of all electricity to come from green sources by 2025.