China currently controls nearly 100 percent of global wafer production & almost 80 percent of global polysilicon production; Senators argue strong U.S. wafer & polysilicon production is vital to compete with China
Washington, D.C. — Today, U.S Senator Patty Murray (D-WA), Chair of the Senate Appropriations Committee, joined Senator Jon Ossoff (D-GA) and ten of their colleagues in pressing the Biden Administration to support U.S. manufacturing of strategic solar components. The Senators are pressing the Biden Administration to ensure that domestic production of wafers and polysilicon is properly incentivized through the Inflation Reduction Act’s bonus tax credit for domestic content, as intended by Congress, to help American solar manufacturing compete with China.
In addition to Senators Murray and Ossoff, Sens. Ron Wyden (D-OR), Joe Manchin (D-WV), Debbie Stabenow (D-MI), Maria Cantwell (D-WA), Sherrod Brown (D-OH), Bob Casey (D-PA), Jeff Merkley (D-OR), Tammy Baldwin (D-WI), Gary Peters (D-MI), and Reverend Raphael Warnock (D-GA) also signed the letter.
The domestic content bonus credit within the Inflation Reduction Act provides an additional bonus credit to clean energy installers and developers who use American-made goods. Congress intended this bonus credit to serve as a direct complement to the manufacturing incentives provided in the Inflation Reduction Act, create a clear demand signal in the market for U.S.-made products, and spur new capital investments in clean energy manufacturing. However, the senators argued, the initial guidance that the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released last May undermines building out a comprehensive American solar supply chain.
“In order to cultivate a strong domestic manufacturing industry, disrupt China’s dominance of the solar supply chain, and bolster U.S. energy and national security, it is essential that these critical solar energy components be manufactured in the United States. Your current guidance, which draws the line at the cell level, falls short of that important goal,” the Senators wrote to Treasury Secretary Yellen and IRS Commissioner Werfel.
China currently controls nearly 100 percent of global wafer production and almost 80 percent of global polysilicon production, two of the most labor- and capital-intensive parts of the solar supply chain.
“It is imperative that any regulations or guidance be consistent with the legislative intent of Congress and send a strong signal that the United States prioritizes the development of a robust, lasting marketplace for American-made wafers and polysilicon. We stand committed to working with you to support U.S. workers, end China’s control of the solar market, and develop a strong domestic solar manufacturing industry to ensure U.S. energy security, economic development, and national security,” the Senators concluded.
The full letter is available HERE.
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