The United States is losing its third-largest producer of solar panels to China.
Come April, the community of Devens, Mass., will have lost 800 jobs due to the off shoring of production.
Iola knows the feeling. It’s not been six months since Haldex Brake pulled up production and moved it to Monterrey, Mexico, costing our community 155 jobs.
Devens, population 1.5 million, will not suffer such a dent to its work force as we have.
Still, the situation raises equally frustrating questions that have no satisfactory an-swers for so many industries today.
Just three years ago, Evergreen Solar seemed to be on propitious footing.
It secured $21 million in Massachusetts subsidies to fund start-up costs for what promised to be a growing industry as the country weans itself from non-renewable energy sources such as coal and oil. In all, the state gave Evergreen $43 million in subsidies.
Trouble is, that initial $21 million was just 5 percent of the needed funds to develop the expansive plant. When Evergreen execs approached local banks for the remainder, bankers didn’t leap at the chance, despite double-digit interest rates.
In stepped China, with an abundance of cheap money from its state-owned banks. In short order, Evergreen executives teamed up with China to fund production of the solar panels. Now, the majority of production is being moved there.
Several reasons led to the decision. First, the loose purse strings; second, the low wages paid to Chinese workers; and third, the plunging prices of solar panels worldwide, due to reasons No. 1 and No. 2.
In the global sense, that solar energy is getting cheaper to adapt to our homes and businesses is good.
On the local scene, however, that China is putting U.S. factories out of business hurts like the dickens.
It puts a greater onus on us to produce products that can’t be so easily or so cheaply replicated halfway around the world.
Perhaps being known as the breadbasket of the world will play more and more to our advantage.
Hug your local farmer.
— Susan Lynn
