Infographic: Why China is Kicking Our Ass in Clean Tech

By Matthew Wheeland - July 20, 2011
Infographic:  Why China is Kicking our Ass in Clean Tech

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infographic: why china is kicking our ass in clean tech


Why China is Kicking Our Ass in Clean Tech

Over the past five years China’s renewable economy has been steadily growing and has now taken the first place spot over the U.S. From investing in clean tech to the active construction of wind farms and photovoltaic plants, China is kicking our American asses around the electric grid. Below are a few reasons why.

Current Capacity

China has officially overtaken the U.S. in renewable energy investments and in total renewable energy produced annually.

Total renewable capacity:

  • China: 103 gigawatts
  • U.S.: 58 gigawatts
Total wind capacity:
  • China: 43,410 megawatts
  • U.S.: 39,270 megawatts
Total solar capacity:
  • China: 800 megawatts
  • U.S.: 3,100 megawatts

Manufacturing Jobs

China is investing $9 billion a month in clean energy and is expected to become the world’s biggest market for wind and solar energy within 5 years. According to Energy Secretary Steven Chu, the U.S. used to manufacture more than 40% of the world’s solar cells.

 

Solar Manufacturing Heads to China

Already, China’s commitment to the solar industry is spurring American technology companies to move their facilities across the Pacific. U.S. Evergreen Solar Inc. moved its production facilities from Massachusetts to China. GE shuttered its solar production facility in Delaware. BP’s solar unit in Maryland ceased production of solar panels in favor of importing panels from China.

 

Running on renewables

Currently the U.S. derives only 8% of its energy from renewable sources. In contrast, China derives 15% and should at least 20% by 2020.

 

Attracting renewable investments

In a recent report by Ernst & Young, global renewable markets were indexed according to their attractiveness for renewable investment. The U.S. placed second behind China.

All renewable energy (index points out of 100):

  • China: 72
  • U.S.: 67
Wind Energy
  • China: 78
  • U.S.: 66
Solar Energy
  • China: 62
  • U.S.: 74
Infrastructure
  • China: 79
  • U.S.: 60

Investments in Renewables

China may produce a greater number of gigawatts and rank higher on global market charts, but could they possibly outspend us? Seemingly impossible for the largest economy in the world, but once again we have our proverbial butts handed to us on a fossil fuel platter.

 

Total renewable investment:

  • China: $54.4 billion
  • U.S.: $34 billion
5 year growth rate in investments:
  • China: 88%
  • U.S.: 61%

Distribution of investment by sector

Perhaps the lag in energy growth is not just due to the lack of funding, but the misplaced distribution of the renewable resource budget.
China:
  • Wind: 72%
  • Other renewables: 17.5%
  • Solar: 6.3%
  • Biofuels: 3.8%
  • Efficiency & low-carbon services: .4%
U.S.:
  • Wind: 43%
  • Solar: 25%
  • Biofuels: 17%
  • Efficiency & low-carbon services: 9%
  • Other renewables: 6%

Bombs or turbines?

Many feel that the U.S. is simply lacking the necessary funding to subsidize renewable resources. It is a hard pill to swallow when we look at the defense budget.
In China, for every $3 spent on the defense budget, $1 is spent on renewables. In the U.S., for every $41 spent on the defense budget, $1 is spent on renewables.

Economic incentives

Another distinguishing factor separating the renewable market of China from the U.S. is their key investment incentives. The U.S. incentives are geared more towards large businesses while China has made sure to include incentives for individuals and households.
In China, for wind energies, fixed fee-in tariffs are available. For solar, all rooftops and business buildings can have integrated photovoltaic subsidies. For all renewable energies, there are minimum standards and guaranteed purchase by utilities.
In the U.S., for wind and solar energies, there are production tax credits and investment tax credits. Power storage also provides a federal manufacturers tax credit. There are also federal loan guarantees for clean tech.

Future Growth

By 2016, installed clean energy for both countries is expected to increase. However, the U.S. only has a projected growth rate of 30% compared to China’s 106%.

What You Can Do About It

  • Call (don’t email) your state government rep.
    Your state government has the most power to create the kind of programs that spur job growth quickly, so if you’re only going to make one call, make it at the state government level, not federal. Get contact info at www.votesmart.org/mystate_summary.php
  • Make sure your call counts.
    A staffer will most likely take your call. Tell them, “I’m a voter calling in support of creating stronger renewable energy incentives and programs in our state. I’ve heard that New Jersey and other states have created a lot of new jobs through clean energy incentives. I’d like similar programs in our state.”
  • Magnify your impact.
    Encourage your friends and family to make the call. Here’s a sample Facebook status: “I want more jobs created in the U.S., so I called state representatives in support of stronger clean energy incentives in our state. You should do this, too. Visit www.votesmart.org/mystate_summary.php or Congress.org for contact info.”
  • If you’re really fired up about this…
    You can also call your senators and state representatives in Washington D.C., repeating all the steps mentioned. To get those numbers, go to Congress.org or call the main switchboard at (202) 225-3121 and ask for your state representative or congressperson.

What’s ?

organizes group deals on solar energy. Since 2008, has run over 50 group deals in ten different U.S. states and helped thousands of homeowners go solar. We’ve been featured in dozens of publications and programs including The New York Times, The Economist, The Wall Street Journal, Huffington Post, USA Today, Marketplace, Wired, and GOOD Magazine. In 2010, sponsored the first-ever solar deal on Groupon.com and received a Heart of Green Award for “Best New Innovation.” Want to find out if there’s a group deal on solar in your area? Sign up for (it’s free). Not ready to go solar, but want to help take solar mainstream? Tell your friends about .

By Dave Llorens

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