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PHOENIX -- Arizona certainly has the sunshine it takes to produce solar energy but continues to struggle when it comes to solar-power business.

While the state is second in the country in solar-panel installation, manufacturing is a different story.

Last week Suntech closed its Goodyear solar-panel manufacturing plant, losing almost 50 jobs and First Solar is struggling.

Thunderbird School of Global Management professor John Mathis said it's time for a new line of thought in luring solar-panel makers to Arizona.

China dominates the world's production of solar panels.

"Locating manufacturing facilities on tribal land that is close to where the source is," he said. "There's inexpensive labor and it may take some training. But it's home and they earn the money here and spend the money here."

China's advantage when it comes to solar-panel manufacturing has been lower wages, which are beginning to rise. Mathis said that could keep more companies on American soil.

"At some point it will be to the advantage of U.S. companies to locate at home because of the labor cost standpoint."

Jim Cross, Reporter

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  • Abuse
    2cents wrote...
    Yes, but . . .
    March 19, 2013 8:07 am
    you have a government that promotes burdensome business restrictions, labor unions and higher wages. Cause and effect have long demonstrated a basic, clear-cut map to economic growth. One would have to wish ill upon our economy to not follow it . . . which would bring to question WHY one would wish ill upon our economy.
  • Abuse
    Constitutionalist wrote...
    Still need to be more cost effective.
    March 19, 2013 8:33 am
    Did some calculations on what electricity cost per kwh vs. output of solar panels. While the company making one particular brand guaranteed under warranty that the output would be optimal for 25 years, it would take somewhere between 15-20 years before they paid themselves off. Considering the rest of the parts were on warranty for only 10 years, and $13,000 plus installation was needed upfront, it just doesn't seem like a good investment. If they can get it to where Solar panels can maintain output for 20-25 years and pay themselves off in 10 years, then I think I would invest.
  • Abuse
    wrote...
    i agree
    March 19, 2013 8:56 am
    the very high upfront cost is what is keeping me away. for my house it was going to cost me $18k up front. and in the current "o"conomy, i just can't even think about doing something like that.
  • Abuse
    OneWonders wrote...
    Don't worry, I'm
    March 19, 2013 10:19 am
    sure Obama will throw more money at these never successful, always failing green energy companies.
    Equal Justice, Not Social Justice.
  • Abuse
    Rassam wrote...
    Nuclear power too...
    March 19, 2013 1:53 pm
    The Feds subsidize them like crazy.
  • 1

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