Cheap Solar Vs. Human Rights

Recently the United States has enjoyed unprecedented low prices on solar panels. Paired with state incentives and the Federal Solar Tax Credit extension, the solar industry is poised to skyrocket. However, recent legislation is throwing shade on the future of the U.S. solar industry. The issue isn't whether solar works or is good for the environment; it's now the ethical questions of Cheap Solar vs. Human Rights.

The Rise Of Cheaper Solar

Over the past decade, the cost to produce electricity from solar energy dropped by 80%. Solar manufacturing in the U.S. grew steadily in the last two years thanks to President Trump's 2018 Section 201 tariffs to hold back solar module imports worldwide. In 2019, sunny and environmentally friendly states like California drove solar installations up by 24%, and U.S. solar manufacturing companies cannot currently meet that demand. 

China produces the bulk of solar equipment globally, and many of the U.S. manufacturers of solar panels were hoping to expand production. However, with President Biden's climate change policies due to drop the Section 201 tariffs to 18%, it won't be enough to protect the U.S. suppliers easily outpriced by overseas imports. In the coming years, prepare to see markets flooded by cheap solar panels made in China or Southeast Asia.  

The Polysilicon Factor

So this is excellent news for consumers, right? The cost of going solar is still around the price of buying a new car and is out of reach for most homeowners. Cheaper solar components mean this technology will now be more accessible for people who want to lower their electric bills and save the environment. However, there is a dark side to this industry, and it has to do with the metallic grey crystal called polysilicon and an area of China named Xinjiang. 

This particular crystal is key to making solar cells, which convert sunlight into energy. Just five years ago, only 9% of the world's solar-grade polysilicon came from Xinjiang, China. Last year this region accounted for almost 50% of the world's supply. In short, the solar industry is reliant on components imported from this region as it is the epicenter for lower cost (and lower quality) solar panels.

Labor Camps & Human Rights

Along with cheap solar components, Xinjiang is also a region in China synonymous with forced labor. Since 2016, the Chinese Communist Party has specifically targeted their Muslim minority population, including ethnic Uighurs, Kazakhs, and others. 13 million people are affected by a government campaign that has included mass detention, digital surveillance, indoctrination, and forced labor. 

China has more than a million people detained in detention facilities throughout the region of Xinjiang. Muslim minorities are subjects of forced labor in these factories within the camps, and the communist party's surveillance is heavy here. There have been reports of the Uighurs being used as forced labor in solar and other industries and local people being herded into these re-education camps as well. 

Of course, the Chinese government denies that any of these forced labor camps even exist and that all labor is voluntary. Surveillance in the Xinjiang region prohibits outside observers from verifying whether they are working there of their own accord. Many companies find it next to impossible to audit their supply chains for forced labor. 

Solution For The Solar Industry

This forced labor has become such an issue that the last session of Congress considered a bill banning all goods from the Xinjiang region. Specifically, the "Poverty Alleviation" programs in China were a target of the bill. These programs relocate Muslims to work in factories or on farms far away from their hometowns. Political pressure continues to build, as does the complexities of disrupting solar components' most significant supply chain. This area of China accounts for almost 50% of the world's supply of solar-grade polysilicon.   

U.S. law gives the U.S. Customs the authority to ban imports from the Xinjiang region if it suspects forced labor has been used. Until rules are changed to ban trade with countries engaging in forced labor practices, consumers will have to decide whether to purchase goods manufactured in China's Xinjiang region. 

The silver lining here is the fact that polycrystalline solar panels are far inferior to monocrystalline panels on many levels. When you are looking at quality and efficiency factors, monocrystalline panels win hands down. The cost will be higher, but the longevity of your home solar system and the energy it will produce to meet your energy goals are at stake. Serious solar installers won't even use poly cell solar panels, so if you have a solar installer with prices so low no, no one else can touch them - beware. They could be using inferior panels, and they are more than likely from this region in China.