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Environmental Rules, Not Oil Politics, Derailed U.S. Solar Manufacturing

Wall Street Journal US Business •
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Former White House chief of staff Rahm Emanuel correctly identifies America's reliance on Chinese solar panels as a policy failure, but places blame on the wrong culprit. The real damage came from regulatory overreach and flawed tax incentives that stifled domestic production.

While Republicans focused on oil and gas, China poured $50 billion in state subsidies into its solar industry. American policymakers, across both parties, saddled manufacturers with excessive environmental regulations and tax credits favoring capital expenditure over operational efficiency. These policies emerged during administrations including Emanuel's tenure in the Obama White House.

Texas offers a blueprint worth studying. The state leads the nation in renewable energy generation while maintaining affordable, resilient power through market incentives and pragmatic energy policy. Voters there prioritize abundant, cheap electricity regardless of source.

The solution lies in fixing regulatory barriers and adopting Texas-style market approaches rather than partisan energy politics. America pioneered solar technology but surrendered manufacturing leadership to Beijing through self-inflicted policy wounds.