Solar panels, trackers, inverters and batteries would all get manufacturing credits in Inflation Reduction Act

Adopted by the Senate Inflation Reduction Act of 2022 includes production tax credits for a number of solar components, not just solar panels. Pending a vote by the House of Representatives and the final signing by President Joe Biden, the advocacy group SEIA has already suggested that the tax cuts in IRA could boost more than 30 GW of new solar panel production capacity in the United States. Add to that the production of inverters, trackers and batteries, and finally a true domestic supply chain of components for solar and storage projects could be realized.

Here are the listed production tax credits related to the solar and storage industries:

PANELS

  • Thin film or crystalline silicon PV module: 7¢/WDC
  • Thin film or crystalline silicon PV cell: 4¢/WDC
  • Thin film or polysilicon PV wafer: $12/m2
  • Solar grade polysilicon: $3/kg
  • Polymer backsheet: 40¢/m2

TRACKERS

  • Torque tube (defined as: rotated by a tracker drive system): 87¢/kg
  • Structural fastener (used to connect a tracker’s mechanical/drive system to the foundation, torsion tubes to drive assemblies, or segments of torsion tubes together): $2.28/kg

INVERTERS

  • Central inverter (>1 MWAC capacity): 0.25¢/WAC
  • Utility converter (>125 kWAC<1MWAC): 1.5¢/WAC
  • Commercial inverter (>20 kWAC<125 kWAC): 2¢/WAC
  • Residential inverter (<20 kWAC): 6.5¢/WAC
  • Microinverter (<650WAC and connect to one solar module): 11¢/WAC

ENERGY STORAGE

  • Battery cell (>12 Wh capacity): $35/kWh
  • Battery module (>7 kWh): $10/kWh
  • Electrode active materials (cathodes, anodes, anode foils, solvents, additives, electrolyte salts): 10% of the production cost

CRITICAL MINERALS

  • All receive 10% of the production cost
    • Specific Purities Required: aluminum, antimony, barite, beryllium, cerium, cesium, chromium, cobalt (converted to cobalt sulfate), dysprosium, europium, fluorspar, gadolinium, germanium, graphite, indium, lithium (converted to lithium carbonate or lithium hydroxide), manganese, neodymium, nickel ( converted to nickel sulfate), niobium, tellurium (converted to cadmium telluride), tin, tungsten, vanadium, yttrium
    • Purified to at least 99%: arsenic, bismuth, erbium, gallium, hafnium, holmium, iridium, lanthanum, lutetium, magnesium, palladium, platinum, praseodymium, rhodium, rubidium, ruthenium, samarium, scandium, tantalum, terbium, thulium, titanium, zinc kytterzium

The above production tax credits would be in effect for components manufactured and sold after December 31, 2022. Full credit listed would be given to anything sold through December 31, 2029. From 2030, the credits will begin their phasing out:

  • 2030: 75% of the credit amount
  • 2031: 50%
  • 2032: 25%
  • 2033: 0%

US production notes regarding the IRA’s Senate passage:

“The Ultra Low-Carbon Solar Alliance applauds Senate approval of the 2022 Inflation Reduction Act. These energy supplies are good news for the US economy. They will give the US a strong competitive edge in solar production and pave the way for investment in the US solar supply chain, thereby expanding the growth already underway in US solar production. accelerated. This will lead to more quality manufacturing jobs, stronger US energy independence and fewer carbon emissions.” – Michael Parr, Executive Director of the Ultra Low-Carbon Solar Alliance

“With Senate approval of the Inflation Reduction Act today, we are one big step closer to turning the climate crisis into a once-in-a-generation opportunity. This bill will result in billions of dollars of investment in clean energy, it will make our supply chains more resilient, our energy more affordable and it will drastically reduce CO2 emissions… Once this bill becomes law, we look forward to shutting down our factories. expand and hire staff. thousands of American factory workers.” – Scott Moskowitz, Senior Director of Market Intelligence, Public Affairs and Marketing, Qcells North America

“Nexttracker strongly supports the Inflation Reduction Act, which will immediately increase the workforce in our US factories. Together with our colleagues in the clean energy industry, this action will create more than 500,000 jobs. Accelerating the use of solar energy in the grid will lower electricity customer bills and reduce emissions by 40%. Energy independence and decoupling from foreign inflation factors have never been more important. We urge the House to swiftly pass this landmark legislation ahead of President Biden’s signature.” – Dan Shugar, CEO and Founder of Nexttracker


See a list of current solar panel manufacturers in the US here.

See a list of worldwide inverter manufacturing locations here (may be limited to US manufacturers only).

Solar Power World will update this story as more details emerge

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