How much of America鈥檚 clean energy infrastructure is built in the US?

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padding-top: 100px; } </style> <div class="ts-rich-text rich-text-centered"> <div class="rich-text"> <p data-block-key="6g43p">Renewable energy sources, including wind, hydropower, solar, biomass and geothermal, contributed <a href="https://www.energy.gov/eere/renewable-energy#:~:text=Renewable%20energy%20is%20energy%20produced,heating%20and%20cooling%2C%20and%20transportation." target="_blank">20%</a> of US electricity in 2021. This proportion is rapidly expanding; over <a href="https://www.eia.gov/todayinenergy/detail.php?id=50818" target="_blank">60%</a> of new electricity generation capacity in 2022 will be renewable.</p><p data-block-key="bll72">A clean energy industry needs specific equipment to work. Solar energy needs solar panels with photovoltaic (PV) cells designed to convert energy from the sun. Wind energy needs turbines. Renewable energy often relies on batteries to store energy from intermittent energy sources such as wind and solar, which only generate electricity about 40% of the time.</p><p data-block-key="erp3u">The recently passed Inflation Reduction Act attempts to encourage US-based manufacturing of this kind of clean infrastructure. The bill includes at least $15 billion in clean manufacturing tax credits meant to increase domestic manufacturing capacity for solar panels, wind turbines, and lithium batteries.</p> </div> </div> <div class="ts-rich-text rich-text-centered"> <div class="rich-text"> <h2 data-block-key="6g43p"><b>How many solar panels does the US produce domestically?</b></h2><p data-block-key="1gdah">Solar farms and other utility-scale facilities generated 111 million megawatt hours (Mwh) in 2021, enough electricity to power more than <a href="https://usafacts.org/articles/how-much-solar-energy-do-homes-produce/">10 million homes</a>. Most solar panels are imported, with <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/06/declaration-of-emergency-and-authorization-for-temporary-extensions-of-time-and-duty-free-importation-of-solar-cells-and-modules-from-southeast-asia/" target="_blank">three-quarters</a> of the imports originating from Chinese subsidiaries manufacturing in Southeast Asia<a href="#footnote-1" id="footnote-source-1"><sup>[1]</sup></a>. Despite heavy import tariffs<a href="#footnote-2" id="footnote-source-2"><sup>[2]</sup></a>, the US has not kept pace with global solar manufacturing growth and lost <a href="https://www.nrel.gov/docs/fy19osti/73363.pdf" target="_blank">80% of its global market share</a> from 2009 to 2019. In 2004, the US accounted for about 13% of global solar panel shipments but fell to just <a href="https://www.nrel.gov/docs/fy19osti/73363.pdf" target="_blank">0.5%</a> in 2017.</p><p data-block-key="c2s3u">Recently, imports haven鈥檛 kept up with the domestic demand for solar panels. In response, President Joe Biden declared an <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/06/declaration-of-emergency-and-authorization-for-temporary-extensions-of-time-and-duty-free-importation-of-solar-cells-and-modules-from-southeast-asia/" target="_blank">electricity generation emergency</a> in June 2022. The executive action聽eliminated import taxes on solar cells and panels from Cambodia, Malaysia, Thailand, and Vietnam. Since 2012, the US applied import tariffs to solar parts聽to bolster domestic solar manufacturing. Tariffs instituted in 2018 were as high as <a href="https://www.eia.gov/todayinenergy/detail.php?id=34952" target="_blank">30%</a>.</p> </div> </div> <section class="my-4 sm:my-6 md:my-8 container-break"> <div id="china-has-more-than-twice-the-solar-energy-generating-capacity-of-the-us" data-title="China has more than twice the solar energy generating capacity of the US." class="custom-chart chart-container fluid-container-sm sm:px-8 md:px-0" data-chart-container > <h3 class="ts-h3 mt-0">China has more than twice the solar energy generating capacity of the US.</h3> <div class="ts-rich-text text-type-base"> </div> <div class="charts w-full h-full " data-type="0" data-title="China has more than twice the solar energy generating capacity of the US." data-raw-options='{ "source": "SOTU", "title": "", hideTooltip:true, "subtitle": "New and total solar capacity in gigawatts in 2021", chartType:14, hideValueLabel:true, fontSize:13, barHeight:14, hideYear:true, hideTooltipYear:true, axisTextColor: "#616161", groups: [ {"id": "one", "label": "China"}, {"id": "two", "label": "US"}, {"id": "three", "label": "Japan"}, {"id": "four", "label": "India"}, {"id": "five", "label": "Germany"}, {"id": "six", "label": "Australia"}, {"id": "seven", "label": "Italy"}, {"id": "eight", "label": "South Korea"}, {"id": "nine", "label": "Spain"}, {"id": "ten", "label": "Vietnam"}, {"id": "eleven", "label": "Rest of Europe"}, {"id": "twelve", "label": "Rest of World"}, ], // Ctrl + F to replace "Mean percentage of state affected" with the category you want // to show up on top. 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cursor-pointer" data-url="/embed/chart/"> <use class="pointer-events-none" xlink:href="#embed"></use> </svg> </div> <div class="chart-share-modal"> <div class="chart-share-modal__bg"></div> <div class="chart-share-modal__body" tabindex="0"> <svg class="chart-share-modal__close absolute right-0 top-0 sotu__sources-toggle p-4" tabindex="0"><use xlink:href="#close"></use></svg> <div class="inline-block text-2xs font-semibold uppercase tracking-wider text-gray-600 md:mt-0 mb-4"> Embed on your website </div> <div class="bg-gray-100 flex"> <textarea aria-labelledby="Embeded chart html"class="chart-share-modal__url bg-gray-100 p-3 w-full focus:outline-none text-gray-800" rows="4"></textarea> <a class="chart-share-modal__button block bg-usafacts-blue px-4 py-5 hover:bg-usafacts-pink cursor-pointer text-white flex items-center justify-center tracking-wide text-base font-semibold" tabindex="0">Copy</a> </div> </div> </div> </div> </section> <div class="ts-rich-text rich-text-centered"> <div class="rich-text"> <h2 data-block-key="6g43p"><b>How does domestic wind manufacturing compare to solar?</b></h2><p data-block-key="40i3m">In the last five years, an average of <a href="https://www.energy.gov/sites/default/files/2022-02/Wind%20Supply%20Chain%20Report%20-%20Final%202.25.22.pdf" target="_blank">4,000 wind turbines</a> have been installed annually聽in the US. While <a href="https://usafacts.org/articles/how-much-us-electricity-comes-from-wind-power/">US wind</a> manufacturing capacity is greater than solar, America still relies on imports for wind turbine production.</p><p data-block-key="vqbh">There are several parts to a wind turbine: the nacelle, which goes behind the wind blades and protects the generator, the tower, which elevates the blades, and the blades and hubs themselves.</p><p data-block-key="bgben">The US produces several <a href="https://www.energy.gov/sites/prod/files/2019/08/f65/2018%20Wind%20Technologies%20Market%20Report%20FINAL.pdf" target="_blank">wind turbine components</a> domestically, including over 85% of nacelles, 75 to 90% of towers, and 50 to聽70% of the blades and hubs. These parts are produced at 500 wind-related manufacturing facilities, part of a wind industry that employs over 100,000 people.</p><p data-block-key="2mndj">However, the <a href="https://www.energy.gov/sites/prod/files/2019/08/f65/2018%20Wind%20Technologies%20Market%20Report%20FINAL.pdf" target="_blank">Office of Energy Efficiency and Renewable Energy</a> notes that these statistics overstate US self-reliance because it does not account for other specialized equipment and does not consider the raw materials such as steel that are imported and then used in domestic assembly.</p> </div> </div> <section class="my-4 sm:my-6 md:my-8 container-break"> <div id="us-based-general-electric-ge-leads-the-wind-manufacturing-industry-in-the-us" data-title="US-based General Electric (GE) leads the wind manufacturing industry in the US." class="custom-chart chart-container fluid-container-sm sm:px-8 md:px-0" data-chart-container > <div class="charts w-full h-full " data-type="0" data-title="US-based General Electric (GE) leads the wind manufacturing industry in the US." data-raw-options='{ "source": "SOTU", "titleOptions" : {text:"US-based GE leads the wind manufacturing industry in the US."}, "subtitleOptions":{text:"Percent of wind capacity installed in the US in 2015 manufactured by each company"}, dropdownOptions:{show:false}, tooltipOptions: {show:false}, "primaryColor":"rgb(1,81,147)", "titleVerticalPosition": "top", "selectableYears":false, "hideYear": true, "hideTooltipYear":true, "titleFontSize": 14, "titleHorizontalAlignment" : "left", "fontSize": 14, "metrics": [ {"id": "sotu_sv_00106"}, {"id": "sotu_sv_00107"}, {"id": "sotu_sv_00108"}, {"id": "sotu_sv_00109"}, {"id": "sotu_sv_00110"}, {"id": "sotu_sv_00111"}, ], "chartType": 203, "sortRows": true, "axisTextColor": "#616161", "margins": {"top": 0}, footerOptions: {footnotes:[{data: "All foreign-based companies above have US-based manufacturing facilities", name:"FOOTNOTETITLE"}]} }' data-extra-footnotes='[]' data-extra-sources='[]' data-base-url="https://a.usafacts.org/api/v4/Metrics"> </div> <div class="share-icons text-usafacts-gray"> <svg class="chart-share-icons__facebook fill-current hover:text-usafacts-pink cursor-pointer"> <use xlink:href="#facebook"></use> </svg> <svg class="chart-share-icons__twitter fill-current hover:text-usafacts-pink cursor-pointer"> <use xlink:href="#twitter"></use> </svg> <svg class="chart-share-icons__linkedin fill-current hover:text-usafacts-pink cursor-pointer"> <use xlink:href="#linkedin"></use> </svg> <svg class="chart-share-icons__mail fill-current hover:text-usafacts-pink cursor-pointer"> <use xlink:href="#mail-share"></use> </svg> <svg class="chart-share-icons__embed fill-current hover:text-usafacts-pink cursor-pointer" data-url="/embed/chart/"> <use class="pointer-events-none" xlink:href="#embed"></use> </svg> </div> <div class="chart-share-modal"> <div class="chart-share-modal__bg"></div> <div class="chart-share-modal__body" tabindex="0"> <svg class="chart-share-modal__close absolute right-0 top-0 sotu__sources-toggle p-4" tabindex="0"><use xlink:href="#close"></use></svg> <div class="inline-block text-2xs font-semibold uppercase tracking-wider text-gray-600 md:mt-0 mb-4"> Embed on your website </div> <div class="bg-gray-100 flex"> <textarea aria-labelledby="Embeded chart html"class="chart-share-modal__url bg-gray-100 p-3 w-full focus:outline-none text-gray-800" rows="4"></textarea> <a class="chart-share-modal__button block bg-usafacts-blue px-4 py-5 hover:bg-usafacts-pink cursor-pointer text-white flex items-center justify-center tracking-wide text-base font-semibold" tabindex="0">Copy</a> </div> </div> </div> </div> </section> <div class="ts-rich-text rich-text-centered"> <div class="rich-text"> <h2 data-block-key="1224n"><b>Where do lithium batteries come from?</b></h2><p data-block-key="2omdm">In 2021, the US installed about <a href="https://www.energy.gov/eere/solar/quarterly-solar-industry-update" target="_blank">10.6 GWh</a> of energy storage into the electric grid. Most energy storage is in the form of <a href="https://www.epa.gov/energy/electricity-storage" target="_blank">pumped hydroelectric,</a> where water is pumped up to a reservoir in times of electricity surplus and then released through a turbine when it's needed later.</p><p data-block-key="132ro">Larger <a href="https://www.eia.gov/todayinenergy/detail.php?id=41813" target="_blank">lithium-ion batteries</a> are used primarily in electric vehicles. But they鈥檙e also used with renewable energy sources such as wind turbines or solar panels. The batteries serve a similar purpose as pumped hydroelectric storage, meaning they store the energy generated during windy or sunny periods and release it later when needed.</p><p data-block-key="7h5n6">In 2020, China manufactured <a href="https://www.energy.gov/sites/default/files/2021-06/FCAB%20National%20Blueprint%20Lithium%20Batteries%200621_0.pdf" target="_blank">76% of global lithium-ion battery capacity</a>, while the US produced 8%.</p> </div> </div> <div class="ts-rich-text rich-text-centered"> <div class="rich-text"> <h2 data-block-key="1224n"><b>How could the Inflation Reduction Act impact domestic manufacturing of renewable infrastructure?</b></h2><p data-block-key="8o9af">The Inflation Reduction Act will provide at least $15 billion in tax credits to companies that invest in renewable energy-related properties. These include properties designed to manufacture fuel cells, microturbines, or electric vehicle batteries. The tax credit rate spans from 10% to 30% depending on the type of energy source on the property. To get the full tax credit, companies need to meet fair wage standards and apprenticeship requirements, otherwise the credits are slashed by 80%. A new tax credit specific to manufacturing is also included in the bill. The act also renews an expired solar production tax credit that compensates firms for each kWh generated.</p><p data-block-key="f2ppd"><i>Learn more from USAFacts and get the data directly in your inbox by</i> <a href="https://usafacts.org/signup/"><i>signing up for our newsletter.</i></a></p> </div> </div> <div class="my-12 fluid-container-sm px-0"> <div class="lf-content-video-container"> <iframe src="https://www.youtube.com/embed/hCbUx_znoYg" frameborder="0" allowfullscreen></iframe> </div> </div> <section class="footnotes" id="footnotes"> <div class=" fluid-container-sm px-0 mt-4 "> <div class="publication__sources text-xs border-gray-200 border-t"> <dl class="flex flex-col justify-between pt-4 mb-3"> <div class="flex flex-row items-center mb-3" id="footnote-1" style="scroll-margin: 100px;"> <dt class="text-xs font-bold mt-3 mb-3 mr-3 text-gray-900"> <a class="text-usafacts-blue footnotes__list-item-counter" href="#footnote-source-1" aria-label="Back to content" data-article-footnote-link> [1] </a> </dt> <dd class="text-2xs sm:text-sm text-gray-600"><p data-block-key="gx66x">Most solar panels come from Malaysia, Vietnam, Thailand, and Cambodia.</p></dd> </div> <div class="flex flex-row items-center mb-3" id="footnote-2" style="scroll-margin: 100px;"> <dt class="text-xs font-bold mt-3 mb-3 mr-3 text-gray-900"> <a class="text-usafacts-blue footnotes__list-item-counter" href="#footnote-source-2" aria-label="Back to content" data-article-footnote-link> [2] </a> </dt> <dd class="text-2xs sm:text-sm text-gray-600"><p data-block-key="hociz">Tariffs are taxes placed on imported or exported goods.</p></dd> </div> </dl> </div> </div> </section> </section> <section class="mt-12 sm:mt-24 md:mt-48 print:hidden"> <div class="container"> <div class="mb-6 md:mb-8"> <h2 class="inline-block text-usafacts-blue text-2xl sm:text-4xl md:text-5xl lg:text-6xl font-bold leading-tight">Explore more of USAFacts</h2> </div> <div class="flex flex-wrap flex-col sm:flex-row 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How much of America鈥檚 clean energy infrastructure is built in the US?