US Solar Factories to Produce ‘Made in USA’ Panels
TL/DR –
Georgia-based solar cell producer Suniva and Canada’s Heliene are partnering to produce solar panels, enabling users to obtain a new federal subsidy for American-made clean energy equipment. Under a three-year, $400m deal, Suniva will supply cells to Heliene, which will assemble them into panels capable of powering around 350,000 homes. Builders who use these panels, made with American-produced cells, can claim a 10% tax credit, in addition to a 30% Inflation Reduction Act tax credit for renewable energy facilities.
US Solar Manufacturers Collaborate to Leverage Federal Clean Energy Subsidy
US solar developers stand to benefit from a new agreement between Georgia-based Suniva and Canadian firm Heliene. The partnership aims to produce solar panels that meet the criteria for a new American-made clean energy equipment subsidy.
The collaboration is seen as proof of the Inflation Reduction Act’s (IRA) successful role in invigorating domestic solar manufacturing to rival China. Treasury Secretary Janet Yellen, visiting Suniva’s Norcross, Georgia, facility, highlighted that 20% of US solar manufacturing jobs were lost between 2016 and 2020, and initiatives like the IRA are shifting the landscape.
Suniva is set to revive an idled factory while Heliene, with its panel-making operations in Minnesota, will assemble the cells supplied by Suniva. The $400 million, three-year deal is expected to generate roughly 2 gigawatts of solar projects, sufficient to power 350,000 homes.
The Treasury Department’s domestic content rules permit builders to claim a 10% tax credit if they use panels with American-made cells. With no current US-based silicon solar cell suppliers, this bonus credit under the 2022 IRA has been elusive for developers.
“This contract stands as evidence of the Inflation Reduction Act and Treasury’s May 2023 domestic content guidance,” said Suniva CEO Cristiano Amoruso. “We are proud to bring back cell manufacturing to the United States at our Norcross facility.”
The domestic content bonus credit complements the 30% IRA tax credit for renewable energy facilities.
—
Read More US Economic News