A newly opened solar panel manufacturing plant in Pataskala, Ohio, is generating hundreds of new jobs. However, its partial Chinese ownership has led to concerns about the U.S. government subsidies supporting it.
The factory, operated under a joint venture called Illuminate USA, promises to produce more than 9.2 million solar panels annually. That would make it one of the largest advanced solar panel production hubs in the United States.
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The company is a partnership between American power-developing giant Invenergy and Chinese company Longi Green Energy. The Chinese company reportedly owns a 49% stake in the business.
Illuminate USA has secured a 15-year tax abatement from the city and $4 million in state economic incentives. It could receive as much as $350 million in annual tax subsidies from the federal Inflation Reduction Act.
Critics argue that such subsidies allow a foreign-backed venture to benefit from American taxpayer funds while competing against U.S. solar companies.
They also note that Chinese solar developers already benefit from subsidies in their home country. That enables the company to manufacture solar panels at nearly half the cost of American-made alternatives.
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Some Ohio residents worry that funding a Chinese-backed project is “betraying America.” They are also concerned about the potential job loss if these subsidies are rescinded and Longi choses to exit the venture.
Illuminate USA’s Chief Legal Officer John Duer contends that the company could adapt if subsidies were reduced. He stated that “nothing can’t be overcome” and emphasized the company is committed to a long-term presence in Ohio.
A NEW SOLAR PANEL FACTORY HAS BROUGHT HUNDREDS OF NEW JOBS TO OHIO-
WITH THE PROMISE TO PRODUCE MORE THAN 9.2 MILLION PANELS ANNUALLY.
WHICH WOULD MAKE IT ONE OF THE NATION’S LARGEST ADVANCED SOLAR PANEL MANUFACTURING HUBS.
BUT CRITICS ARE RAISING CONCERNS ABOUT THE FEDERAL SUBSIDIES THIS PLANT WILL RECEIVE-
WHEN NEARLY HALF OF IT IS OWNED BY A CHINESE COMPANY.
LOCATED IN PATASKALA OHIO, THE FACTORY IS A JOINT VENTURE CALLED ILLUMINATE USA.
A PARTNERSHIP BETWEEN U.S. POWER DEVELOPING GIANT INVENERGY AND CHINA’S LONGI GREEN ENERGY-
THE LATTER CONTROLLING 49 PERCENT OF THE BUSINESS.
WITH THIS SETUP ALLOWING THEM TO SKIRT AMERICAN TARIFFS ON CHINESE MADE SOLAR PANELS.
THE PROJECT HAS REPORTEDLY RECEIVED A 15-YEAR TAX ABATEMENT FROM THE CITY AND 4 MILLION DOLLARS IN INCENTIVES FROM A STATE ECONOMIC DEVELOPMENT AGENCY.
ALL IN ADDITION TO 350 MILLION DOLLARS IN POTENTIAL ANNUAL TAX SUBSIDIES FROM THE INFLATION REDUCTION ACT.
LOCALS SAY GIVING THOSE FUNDS TO A CHINESE-BACKED ENDEAVOR IS BETRAYING AMERICA AND ALLOWING AN UNEVEN PLAYING FIELD-
AS BEIJING ALREADY DOLLS OUT SIGNIFICANT SUBSIDIES AND TAX BREAKS TO ITS OWN SOLAR MANUFACTURERS.
BENEFITS THAT HELP MAKE THEIR SOLAR PANELS ALMOST HALF THE COST OF AMERICAN-MADE ONES.
WHILE THERE ARE OHIO RESIDENTS WHO DON’T WANT TO SEE U.S. TAX DOLLARS BENEFIT THE CHINESE ECONOMY-
THEY ALSO FEAR WHAT WILL HAPPEN IF THOSE INCENTIVES ARE ULTIMATELY TAKEN AWAY.
POTENTIALLY COSTING PEOPLE IN THE STATE THEIR JOBS SHOULD LONGI GREEN ENERGY DECIDE RESPOND BY PULLING THEIR BUSINESS.
HOWEVER, ILLUMINATE USA’S CHIEF LEGAL OFFICER CLAIMS THAT EVEN IF THEIR SUBSIDIES ARE ROLLED BACK THE COMPANY WILL BE ABLE TO MAKE ADJUSTMENTS-
SAYING NOTHING CAN’T BE OVERCOME AND THEY’RE HERE TO STAY.
TO GET MORE STORIES ABOUT CONFLICTS BETWEEN THE US AND CHINA OVER THE RENEWABLE ENERGY TRANSITION, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.
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