The solar industry created one out of every 50 new jobs in the U.S. in 2016. It is growing almost 17 times as fast as the national economy, making it the fastest-growing industry in the country. By any measure, the solar industry is one of the most impressive contributors to U.S. economic growth.
But thanks to a trade case from two foreign-owned solar panel manufacturers that has reached the president’s desk, solar’s upward trajectory is at risk, and with it tens of thousands of American jobs. The case proposes substantial trade restrictions on foreign-made solar panels, ostensibly in order to bolster solar panel manufacturing in the U.S.
As a vocal proponent of domestic manufacturing, the president would naturally seem to be in favor of import tariffs. But he shouldn’t be in this case. The potential small gains in jobs from solar panel manufacturing will be greatly overshadowed by the massive U.S. job losses that will occur as a result.
I bring a unique perspective to this debate. I’ve been a Republican my entire life, and I currently live in Utah, a historically red state, where I lead one of the largest residential solar providers in the country. Like the president, I am a firm believer in a free market economy and U.S. job growth.
For this reason, my company and virtually every other residential and utility solar provider, source our solar panels from overseas. This approach has enabled my company to create over 4,000 well-paying U.S.-based jobs across 21 states over the last six years.
In this way, we are no different from many of America’s most celebrated companies. Everyday Americans can only afford a smartphone or a new car because companies like Apple and Ford use some offshore manufacturing. Without access to low-cost panels from abroad, we cannot compete with other energy sources and offer rooftop solar to Americans at an affordable price point, and that means all of our industry’s U.S.-based manufacturing and service employment will be jeopardized.
It simply does not make sense for a Republican administration to punish one of our economy’s all-stars for taking advantage of the free market. As the president and his administration consider what to do, I hope they take into account three important things.
First, Americans want more solar. In today’s political climate, consensus is nearly impossible to achieve, but solar is the rare issue with bipartisan support. Nearly nine in 10 Americans are in favor of expanding solar power – no other energy source has such strong public support. An artificial increase in the price of solar panels will not only harm an economic engine, it will also go against the will of the American people.
Second, people need affordable access to clean energy. Thanks to low-cost panels, solar providers are able to lower barriers to entry and help homeowners power their homes with solar energy for little to no money down. The proposed tariffs would dramatically increase the price of solar panels in the United States, driving down demand by putting rooftop solar out of reach for the majority of Americans. This, in turn, would lead to significant job losses in the solar industry.
Third, Americans need stable jobs that pay well. More than 260,000 American workers belong to the solar industry. From installation to sales to service, this industry has created attractive jobs distributed throughout the country, most of which can never be outsourced or automated. Many don’t realize our industry, even if it is often installing panels made abroad, already has a strong manufacturing presence in the U.S., with 38,000 Americans producing hardware, inverters, and other critical solar components right here at home. These are well-paying jobs that we can count on, provided we continue to see strong demand for solar.
Poorly conceived tariffs will not usher in a new era of solar manufacturing jobs as the petitioners suggest. Economist Thomas Prusa has stated that imposing these trade penalties could eliminate 64 solar jobs for every one solar panel manufacturing job created. These losses would likely hit predominantly Republican states especially hard. Additionally, solar manufacturers in Asia are already transitioning to fully automated plants to maintain the lowest cost of energy globally. America would have to do the same to stay competitive. If the tariff goes through, robots, not American men and women, would get these jobs.
The choice for this administration is simple – live up to its campaign promise to put the hard-working American worker first, or reward two bankrupt foreign-owned entities and devastate a nascent industry driving significant economic growth while increasing our dependency on foreign oil. I hope the president chooses to support American workers and the solar industry by rejecting solar tariffs.
David Bywater is CEO of Vivint Solar.
If you would like to write an op-ed for the Washington Examiner, please read our guidelines on submissions here.
