U.S. commits $56M in new funding for domestic solar manufacturing

The African renewable energy sector is booming and Chinese companies can benefit from that.
Source: Morocco World News

First Solar (NASDAQ:FSLR) led solar stocks (NYSEARCA:TAN) higher Thursday after the Biden administration said it would contribute $56M to programs aimed at boosting U.S. manufacturing of solar energy products, Reuters reports.

finviz dynamic chart for  FSLR

While most solar names finished slightly lower, (FSLR) finished +2.7%; also (ENPH) +2.2%, (MAXN) +1.6%, (SPWR) +1.3%.

The new funding from the Department of Energy will support technologies that are alternatives to the silicon-based products that dominate the market and are primarily made in Asia.

DoE funding will include $27M toward boosting production of solar panels made from cadmium telluride, a technology that does not rely on solar-grade polysilicon, which is made primarily in China; First Solar (FSLR) already produces cadmium telluride panels at its Ohio factory.

The administration also approved construction of the 125-mile Ten West Link transmission line between Tonopah, Arizona and Blythe, California, which is intended to support future development of solar energy projects in the southwest U.S.

The International Energy Agency warned in a recent report that China will soon produce 95% of the world’s solar supply chain.

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.