(Bloomberg) -- A surge of US investment by Chinese solar-panel makers threatens to enhance Beijing’s dominance of the sector, rather than weaning the world’s biggest economy off of it, according to an analysis released Friday.

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The report by the geopolitical and supply-chain consultancy Horizon Advisory comes amid increasing scrutiny of Chinese investment in US-based manufacturing of the solar components, batteries and other tech key to the transition away from fossil fuels. At least 24 gigawatts of new US solar-panel production has been announced by various joint ventures and subsidiaries of Chinese companies — enough to meet more than half of American demand.

The analysis also provides a sobering assessment of how provisions in the Inflation Reduction Act that sought to reduce US dependence on foreign panel makers may be undermining that goal.

“America stands at the precipice of a once-in-a-generation opportunity,” Horizon wrote in its report. “But all risks being wasted if a short-term tradeoff is made to allow Chinese state-backed players to continue to exploit US industrial policy while eroding America’s solar foundation.”

There are big benefits for Chinese companies investing in US solar manufacturing outposts, including Longi Green Energy Technology Co. and Trina Solar Co. US-assembled panels can largely avoid tariffs slapped on imports while qualifying for an IRA tax credit worth 7 cents a watt. For a 5-gigawatt solar factory — like new facilities in Texas and Ohio — that amounts to as much as $350 million a year.

Such projects align with Beijing’s commitment to dominate clean-tech supply chains, said report co-author Nathan Picarsic. Chinese manufacturers that localize production in the US can neuter the threat from competitors, while gaining preferential domestic market treatment in the form of tax credits and support from local politicians, he added.

Solar manufacturing projects racing forward in the US include Trina Solar’s module plant near Dallas, set to begin production in the fourth quarter. Steven Zhu, president of the company’s North American region, said Thursday at the Re+ conference in California that the company is also building up its US supply chain for solar components.

Trina Solar declined to comment on the Horizon report, but in an emailed statement the company said it “has always been committed to global investment and cooperation in the photovoltaic industry, providing the best clean energy products and services to customers around the globe.”