Solar cell producer Suniva and Canadian company Heliene, which has panel-making operations in the U.S., have joined forces; their partnership will enable U.S. solar project developers to qualify for a new federal subsidy for American-made renewable energy equipment.
The agreement is being hailed by the Biden administration as proof that Inflation Reduction Act (IRA) subsidies are helping bolster the domestic solar manufacturing industry so it can compete with China.
Solar project builders using American-made cells will be able to claim a 10% tax credit for using domestic parts. The domestic content bonus credit is in addition to the 30% IRA tax credit for renewable energy facilities.
According to Fast Company, the bonus credit has been elusive since it was signed into law in 2022, due to a lack of silicon-based solar cells, the predominant industry technology, in the U.S.
“This contract is a testament to the effectiveness of the Inflation Reduction Act and Treasury’s May 2023 domestic content guidance,” Suniva CEO Cristiano Amoruso said in a statement. “We are proud to fulfill our long-standing promise to bring back cell manufacturing to the United States at our Norcross facility.”
The three-year, $400M deal will have Suniva supplying solar cells to Heliene, which will then assemble them into panels. The products will be able to supply around 2 gigawatts (GW) of solar projects, or enough capacity to power around 350,000 homes.
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