Green U.S. Jobs to Come From China

You may remember the claims by both candidates in the 2008 presidential elections that alternative energy technology could produce increased employment, greater energy independence and more U.S. exports.

They were probably banking on those jobs coming from homegrown innovation, not from China.

But this week two major announcements herald what may be the start of a technology flow eastward across the Pacific.

On Monday, Suntech Power Holdings(STP Quote) announced plans to build a solar panel manufacturing plant near Phoenix, its first in the U.S. According to PRNewswire-Asia, the Suntech plant will be the first Chinese clean energy technology manufacturing venture in the U.S.

The plant, which is expected to begin production in the third quarter of 2010, definitely will add to U.S. payrolls, although modestly at first. The company currently has more than 60 employees in the U.S., and the new plant is expected to increase that number by 75.

Suntech will benefit from having a distribution system already in place. The company already has a network of 200 solar dealers and integrators and is actively involved with a number of large-scale solar project developers serving the utility market.

The plant will have an initial production capacity of 30 megawatts, about 8.4% of the total solar installed volume in the U.S. for 2008, but only 1.4% of anticipated U.S. volume in 2012.

If Suntech Power intends to be a major player in the U.S., the initial manufacturing effort will have to be increased substantially beyond the initial Phoenix plant.

Suntech also will have to make inroads against the leading solar power manufacturer in the world, U.S.-based First Solar(FSLR Quote), which has achieved a manufacturing cost of $0.85 per watt. A review of the Suntech Web site did not reveal its manufacturing costs.