Chinese solar giant Suntech seeks base for US production

Chinese solar cell and panel maker Suntech Power Holdings (NYSE: STP) said today it plans to start manufacturing its crystalline silicon photovoltaic modules on U.S. soil.

Suntech plans to choose a location in the next six months, surveying several states for the best manufacturing incentives and government policies.

Suntech said producing the panels close to its customers could help to reduce costs for the U.S., a growing market because of increasing utility demand for large-scale wholesale projects, incentives for customer-owned systems, and the federal stimulus package (see Germany, U.S., Australia inject stimulus spending into cleantech).

The move represents Suntech’s strategy to maintain a long-term presence in the States. The facility is expected to supply 10-megawatt solar projects, service a national dealer network, and provide system design and installation support.

Suntech is currently the world’s largest crystalline silicon PV module manufacturer. The company says its patent-pending Pluto technology for its cells improves power output by up to 12 percent, compared to conventional production methods. The company has regional headquarters in China, Switzerland and San Francisco.

Suntech is already one of the strongest players in China. It's among the top bidders for a 10 MW solar power station in Dunhuang, Gansu province, China (see Suntech among 50 global bids for solar project in China). The project, estimated at RMB 500 million ($73 million), is expected to be 70 percent traditional crystalline silicon solar panels with the remaining 30 percent made up of thin-film panels and concentrated solar PV.

The company’s stock was down 0.06 percent to close at $16.44 today.