A newly opened solar panel manufacturing plant in Pataskala, Ohio, is generating hundreds of new jobs. However, its partial Chinese ownership has led to concerns about the U.S. government subsidies supporting it.
The factory, operated under a joint venture called Illuminate USA, promises to produce more than 9.2 million solar panels annually. That would make it one of the largest advanced solar panel production hubs in the United States.
The company is a partnership between American power-developing giant Invenergy and Chinese company Longi Green Energy. The Chinese company reportedly owns a 49% stake in the business.
Illuminate USA has secured a 15-year tax abatement from the city and $4 million in state economic incentives. It could receive as much as $350 million in annual tax subsidies from the federal Inflation Reduction Act.
Critics argue that such subsidies allow a foreign-backed venture to benefit from American taxpayer funds while competing against U.S. solar companies.
They also note that Chinese solar developers already benefit from subsidies in their home country. That enables the company to manufacture solar panels at nearly half the cost of American-made alternatives.
Some Ohio residents worry that funding a Chinese-backed project is “betraying America.” They are also concerned about the potential job loss if these subsidies are rescinded and Longi choses to exit the venture.
Illuminate USA’s Chief Legal Officer John Duer contends that the company could adapt if subsidies were reduced. He stated that “nothing can’t be overcome” and emphasized the company is committed to a long-term presence in Ohio.