CPA Releases Landmark Report on U.S. Solar Supply Chain: A Call for Bold Action to Counter China’s Market Dominance

Report Examines How to Build a Strong, Resilient American Solar Industry

WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today released a new industry report titled “The U.S. Solar Supply Chain 2025: Building a Strong and Resilient American Solar Industry.” The report highlights the critical state of the U.S. domestic solar manufacturing industry and lays out actionable policy recommendations to secure America’s abundant energy future through a diversified energy portfolio that includes a robust advanced solar manufacturing technology supply chain, while reducing dependence on Chinese imports.

The report reveals that despite significant investments spurred by the Inflation Reduction Act (IRA), the U.S. advanced manufacturing solar supply chain is severely threatened by Chinese overproduction, price manipulation, and circumvention of trade laws. Heavily subsidized Chinese firms control over 80% of the global solar supply chain and dominate even U.S.-based production. Additionally, China’s state-subsidized solar industry is also weaponizing billions of dollars in tax credits provided by the IRA. As reported by The New York Times, a CPA economic analysis found “that Chinese manufacturers could earn up to $125 billion in tax credits under the law.” This alarming trend threatens to derail efforts to establish a robust and independent American solar manufacturing industry.

“Despite the passage of the IRA, Chinese overproduction across the entire solar manufacturing supply chain has depressed global and US prices, driving many innovative U.S.-owned solar manufacturers to the brink of bankruptcy, caused financial losses even among China’s giant solar panel producers, and stimulated a flood of imports to the U.S. from facilities in Southeast Asia closely linked to the industry giants in China,” said Jeff Ferry, CPA Chief Economist Emeritus. “China’s domination of the global solar industry is no accident—it is a result of deliberate and massive state subsidies, overproduction, and predatory trade practices.”

KEY FINDINGS:

U.S. solar module prices are below sustainable levels for independent companies.
Chinese companies account for 39% of U.S.-based solar module capacity, compared to only 24% for American-owned firms.
Massive Chinese overproduction has driven global solar module prices to unsustainable levels, leading to the collapse of non-Chinese manufacturing projects like Meyer Burger’s Colorado facility
The Biden administration’s disastrous two-year tariff moratorium on Chinese solar imports from Southeast Asia opened the floodgates to imports, undermining U.S. producers and creating a massive stockpile of Chinese-made solar panels.

Read: “The U.S. Solar Supply Chain 2025: Building a Strong and Resilient American Solar Industry”

“The U.S. is at risk of losing its solar module manufacturing industry despite 13 years of tariffs, federal tax credits, and billions in private investment. Massive imports driven by China’s overproduction have flooded the market, undercutting domestic producers and driving prices to unsustainable levels,” continued Ferry. “Even as new solar module factories were coming online within the U.S., because of the solar tariff moratorium, the U.S. imported 63 GW of panels in 2024—50% more than the 40 GW installed domestically. Without immediate action, we risk losing this critical industry entirely and becoming permanently dependent on an adversary for critical energy infrastructure.”

KEY POLICY RECOMMENDATIONS:

Exclude Foreign Entities of Concern (FEOCs): Prohibit FEOCs from being eligible for IRA tax credits and incentives.
Strengthen Domestic Content Rules: Increase domestic manufacturing requirements for tax credit eligibility to ensure substantial U.S. production of solar panels, cells, and components.
Global, Universal Tariffs: Impose universal tariffs and robustly enforce them on Chinese solar products to advance the policy goal of a robust, domestic manufacturing industry.
Tighten UFLPA Enforcement: Aggressively enforce the Uyghur Forced Labor Prevention Act (UFLPA) to prevent products tainted by forced labor from entering U.S. markets and account for China’s efforts to workaround the legislation.

CPA supports bipartisan legislation introduced last Congress by Senators Sherrod Brown (D-OH), Bill Cassidy (R-LA), Jon Ossoff (D-GA), and Rick Scott (R-FL) that would prevent Chinese companies from receiving IRA 45X tax credits. CPA also supports similar legislation introduced by former U.S. Senator Marco Rubio (R-FL) and U.S. Representative Carol Miller (R-WV).