'Buy American' Law

Pentagon required to buy only American-made solar panels.

On January 9, 2011, the New York Times reported that new legislation signed into law by the president requires the Department of Defense to buy only American-made solar panels.

In essence, the new 'Buy American' provision within the military authorization legislation is the first step towards transitioning the Pentagon away from purchasing Chinese-made solar modules. As the wars in remote desert regions continue, the military is investing more and more in practical solutions to bringing electricity to the troops. The move towards U.S. made modules should have a distinct impact on the U.S. solar industry, though the numbers are not clear at this point. As the Times reported:

China has emerged as the world’s dominant producer of solar panels in the last two years. It accounted for at least half the world’s production last year, and its market share is rising rapidly. The United States accounts for $1.6 billion of the world’s $29 billion market for solar panels; market analyses typically have not broken out military sales separately.

Representative Maurice Hinchey, Democrat (NY), a staunch supporter of the 'Buy American 'provision included in the bill is quoted as saying:

“We’ve had a lot of money taken out of this country and invested in other places around the world, particularly China, and particularly in alternative energies. For them to be producing alternative energy, that’s great, but we need to do it ourselves, and as much of it as possible."

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