U.S. Media: America’s Solar Manufacturing Should Be in Texas, Not China

(Our contributing columnist writes that T1 Energy has Americanized the solar factory in Wilmer, near Dallas—a facility acquired from a Chinese company. Last month, T1 Energy broke ground on a new solar cell manufacturing plant outside Austin, further advancing the development of America’s first-end-to-end solar supply chain.) Texas’s success in building solar infrastructure is commendable—but it falls far short of enabling the U.S. to compete with China across the entire supply chain. The real vulnerability lies upstream. China continues to dominate the global solar supply chain—from polysilicon and wafers to the technical expertise required to assemble final modules. For an industry poised to shape America’s economic and energy future, this dependency poses a serious strategic risk. Leaders across the political spectrum agree that the U.S. must rebuild its manufacturing base and reduce reliance on geopolitical rivals. Progress has already been made in other segments of the energy value chain—including critical minerals and nuclear energy. Investing in domestic solar manufacturing represents another clear opportunity. In recent years, companies have intensified their commitment to building a U.S.-first solar supply chain—and much of this momentum has centered on Texas. Since 2022, total U.S. solar manufacturing investment has reached $36.6 billion. As of 2024, Texas hosts at least 10 planned solar panel manufacturers and nine factories producing other solar components. Texas remains the leader. Last year, SEG Solar completed its first utility-scale delivery from its newly commissioned manufacturing facility in Houston. In Wilmer, T1 Energy Americanized the solar factory it acquired from a Chinese company. Beyond restoring U.S. ownership, the company prioritizes domestically sourced materials—shifting from imported aluminum frames to U.S.-made steel, and partnering with Corning to source domestically produced solar wafers from Michigan. Last month, T1 Energy also began construction of a new solar cell manufacturing plant outside Austin, with an investment exceeding $400 million. This is the true American solar renaissance: factories coming online, jobs returning to U.S. soil, and real production capacity being brought home.

Indonesia Aims for 100 GW of Solar Power; Tsingshan Plans to Enter—How to Interpret the Three Major Overseas Opportunities?

Announcing entry into the 100 GW solar initiative also serves the purpose of leveraging investment to secure policy space. The 100 GW target creates three major opportunities: 1. Energy Storage Indonesia’s 100 GW solar plan comprises 20 GW of utility-scale plants and 80 GW of distributed generation. Where will the distributed capacity be deployed? Across 80,000 villages—accompanied by 320 GWh of battery energy storage systems (BESS). In other words, 80% of the 100 GW will consist of photovoltaic-plus-storage microgrids. What does 320 GWh represent? Even at today’s low system cost of RMB 0.5 per Wh, this amounts to a RMB 16-billion project. One village receives 1 MW of PV paired with 4 MWh of storage—multiplied by 80,000 villages—this is Indonesia’s version of “powering every village.” So far, among Indonesia’s first batch of solar projects, the Madura cluster includes 605 MWp of PV plus storage, while Bali adds another 300 MWp. Currently, commercial & industrial (C&I) side storage is the easiest to deploy in Indonesia; industrial park–level storage ranks second; and integration into PLN’s grid system remains the most challenging—requiring alignment with planning and procurement timelines. 2. On-site PV-Storage Systems for Industrial Parks Tsingshan’s involvement will most likely follow the self-owned power plant model. Under this model, enterprises build and operate their own power generation facilities—as long as they do not sell electricity externally. Projects exceeding 500 kW require approval from the Ministry of Energy and Mineral Resources (ESDM). This model is highly efficient: implementation typically takes only six to ten months, and it is naturally exempt from TKDN (local content requirements). In fact, Tsingshan pledged back in 2021 to install 2 GW of wind and solar capacity for its Indonesian smelting facilities—a commitment now being fulfilled. Tsingshan’s IMIP industrial park consumes 27.3 billion kWh annually—ample space exists for rooftop, idle land, and floating PV installations. In Indonesia, the levelized cost of electricity (LCOE) for large C&I rooftop PV ranges between USD 0.045 and USD 0.07 per kWh, while PLN’s industrial tariff stands at USD 0.068/kWh. Generating power in-house is already cheaper than purchasing from PLN. For example, a 5 MWp C&I rooftop project in West Java carries a system cost of USD 0.85/W, totaling USD 4.25 million in investment and generating 7,300 MWh annually. At USD 0.06/kWh, annual revenue reaches USD 438,000, yielding a full-investment IRR of 8–12%, with payback in 8–10 years. If located within a Special Economic Zone (KEK), tax incentives can lift the IRR to 10–15%. 3. Localized Module Assembly and Supporting Manufacturing Polysilicon and wafer production remain immature in Indonesia; the country lacks near-term competitive advantages here, and economies of scale are unattainable. The most realistic opportunity lies in localized module assembly and supporting component manufacturing. Mounting structures, cables, transformers, and distribution cabinets are all feasible for local production—and demand is stable. Inverters and electrical equipment are also worth pursuing, given increasingly stringent requirements for grid interconnection quality and after-sales service. Module manufacturing, however, warrants caution. Only after Indonesia’s annual new installation volume stabilizes above 1 GW should deeper manufacturing investments be considered. Why? Because of TKDN (local content) requirements. Per ESDM Regulation No. 191 of 2024, the overall local content rate for solar projects must reach at least 20%, calculated across both equipment and services. For PLN tenders, modules alone must meet a 40% local content threshold. Thus, the optimal strategy is to import core components while sourcing auxiliary equipment locally to boost TKDN compliance—and fully localize design, construction, and transportation. Additionally, modules must now pass mandatory SNI (Indonesian National Standard) certification—a regulatory hurdle requiring advance planning and lead time. Local production capacity is already underway: several players have begun laying groundwork.

SEG Solar secures land for planned $950 million cell plant

13 hours ago

SEG Solar secured land for a $950 million heterojunction cell facility near Houston, Texas, targeting 4 GW annual capacity completion by 2028-2029. The project aims to build a vertically integrated domestic solar manufacturing supply chain.

reuters

2026-06-01

SEG Solar Announces Third U.S. Solar Panel Factory in Texas

2026-10-29

SEG Solar secures land for planned $950 million cell plant

SEG Solar secures land for planned $950 million cell plant

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