Blame Environmental Regulations for U.S. Solar’s Troubles

The Wall Street Journal published Drew Bond’s letter to the editor on what has held back the solar industry in America.

It was red tape and poor tax credit structures, courtesy of both parties, that put America’s industry behind China’s.

Rahm Emanuel rightly identifies America’s dependence on Chinese solar as a policy failure in his op-ed “On Energy, Democrats Can Learn From Texas” (June 16), but he misattributes the cause. The U.S. didn’t lose solar manufacturing because Republicans prioritized oil and gas. We lost because China deployed over $50 billion in state subsidies while American policymakers buried an industry the U.S. pioneered with overbearing environmental regulations and a tax credit structure that rewarded capital spending over operational efficiency. Those conditions developed across administrations of both parties, including the one in which Mr. Emanuel served as chief of staff.

The good news is that much of Mr. Emanuel’s prescription—geothermal, small modular reactors, permitting reform, supply-chain investment—is correct. Texas figured this out years ago, building the nation’s most resilient and affordable grid through market incentives and an all-of-the-above approach. Alongside fossil fuels, a Republican state continues to lead the nation in renewable energy generation because voters ultimately don’t care where their energy comes from as long as it is abundant and cheap. The rest of the country would benefit from following the Texas model.

Drew Bond

Co-founder and executive chairman 

C3 Solutions

Falls Church, Va.