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A report from Origami Solar and Wood Mackenzie advises that if the US solar industry switched from aluminum frames to recycled steel frames, it would no longer need to import aluminum frames from Asia.
The Inflation Reduction Act (IRA) is encouraging the adoption of solar energy, in addition to adding bonuses for the use of domestic content, however, there are not enough solar components manufactured in the United States to support rapid construction. According to a recent report by Origami Solar and Wood Mackenzie, the IRA has missed the mark by not encouraging the use of US steel frames for modules, since the US steel industry has the capacity for this and would reduce our dependence on imports. .
The recent report Energy security and the solar supply chain: The urgent case for onshoring , notes that since the approval of the IRA, a total of 138 GW of module manufacturing capacity in the US, with plans to be operational in 2027.
Although Wood Mackenzie expects only about 65 GW of module capacity to come online in 2027, that is still a huge increase in US module capacity in 2023 from 13 GW and the 9 GW produced domestically before the IRA became law.
Meanwhile, as new manufacturing facilities begin full-scale production, the U.S. solar industry remains beholden to imports. China currently dominates the supply chain, from critical minerals to solar cell and wafer production and solar panel assembly, including commonly used aluminum frames.
Although the United States is working to increase its domestic module manufacturing, thanks to the IRA, the report notes that a lesser-known problem is Americas reliance on aluminum module frames. Currently, most of them are imported from East and Southeast Asia, and the report notes that they are all made from high-carbon aluminum.
It should be noted that Origami Solar, based in Bend, Oregon, makes steel frames that are said to reduce the cost and improve the performance of the modules. The company reports that the frames are made from “green” recycled steel, reducing greenhouse gases by up to 93%, representing a reduction of 80 kg per module or 200 metric tons per MW.
The report warns that if the U.S. solar industry switched from aluminum frames to recycled steel, it would stop relying on foreign imports because “the huge and well-established U.S. steel industry is able to easily meet demand from domestic manufacturers with a more reliable, durable, less carbon intensive and easily available product.”
According to Wood Mackenzie, the aluminum frame accounts for more than 13% of the cost of a single-glass 555W PERC module made in China.
The report states that the U.S. steel industry “is poised to rapidly supply affordable, reliable, and much less carbon-intensive frames,” and notes that the IRA offers a domestic content complement for trackers and racking systems using domestic iron and steel. .
Ensuring steel manufacturing to alleviate supply chain issues and transportation volatility is an emerging trend in the tracker and racking sector, and the report notes that the domestic steel industrys partnership with tracker manufacturers has demonstrated its willingness to supply American module producers. According to Wood Mackenzie, the proposed annual tracker manufacturing capacity in the United States is between 70 GW and 100 GW.
Nextracker, a US-based tracker supplier, recently reported that its NX Horizon solar trackers are now available with up to 35% less carbon footprint because they use recycled steel produced in facilities strategically located near mining sites. the projects,
Another tracker supplier, Terrasmart, manufactures its own steel structures. Ed McKiernan, President of Terrasmart, told pv magazine that this approach allows his company to modify its operations “in the blink of an eye” and adapt to clients changing design and timelines.
A recent report from the Solar Energy Manufacturers Association (SEMA) supports the shift from aluminum to steel frames for solar modules because it will reduce dependence on China and offer the industry a domestically sourced solution.
Continuing with aluminum frames means continuing to depend on China, as the report notes that China controls almost 60% of the worlds aluminum supply, while the United States produces only 2%.
In October 2023, the US Department of Commerce also announced the initiation of an antidumping and countervailing duty (AD/CVD) investigation into aluminum extrusions from several countries. The report states that imported extrusions are supposedly 375% cheaper than their actual production cost and that Chinese producers receive subsidies of 170%.
The report also notes the high cost of transporting aluminum frames from Asia, both in dollars and in greenhouse gas (GHG) emissions. He points to a recent report from Boundless Impact Research & Analytics that a 2-by-1 meter steel frame produced domestically emits 90% less GHGs than an aluminum module frame of the same size produced abroad.
Although some might consider using domestically produced aluminum for solar module frames, the report offers several reasons why it would be challenging. He maintains that aluminum production cannot meet demand. For example, according to the report, in 2023 the United States will consume 5.8 megatons of aluminum, but will only produce 0.915 megatons. Scaling the industry to keep pace with solar market demands would be “expensive and time-consuming,” according to the report, which estimates that to meet the 50 GW of solar capacity expected in the US by 2031, we will need 400,000 miles of frames.
In conclusion, the report argues that U.S. aluminum manufacturing cannot meet the needs of the U.S. solar industry, while the domestic rolled steel industry can. Recent data from Wood Mackenzie shows that the US steel industry houses 143.62 megatonnes of crude steel capacity and produced 80 megatonnes of steel in 2023. Additionally, Wood Mackenzie indicates that the total capacity of the US steel industry is expected to grow by more than 10% from 2021 to 2027. |
