“If you fail to plan, you are planning to fail!”
― Benjamin Franklin
The IRA, in concept, was brilliant. What bothers me is that instead of figuring out the best way to build manufacturing, the administration took the extreme requirements for approval towards the 40% US-made module designation. But, as they say, the devil is in the detail, and in this case, US-made means all components.
Solar trackers, Solar panels, and inverters are classified under the “manufactured products” designation. Therefore, American-assembled solar panels must have the following domestically made materials to receive the full credit amount: solar cells, frame and back rail, glass, encapsulant, backsheet, junction box, edge seals, pottants, adhesives, bus ribbons, and bypass diodes. Hopefully, (SEIA) will work to get “partial credit amounts based on a portion of US materials.
Using module materials as an example, there are insufficient materials made in the US, such as solar cells, glass, junction boxes, backsheets, etc. Although, now, glass companies are planning, cell manufacturing is two years out. Will the IRA allow for and give credit to the US-assembled companies? Based on the news released, no.
The domestic content bonus applies to projects built using required amounts of domestic-produced steel, iron, and manufactured products. A product is considered “Made-in-USA” under this rule if 40% of the manufacturing cost (when used on projects beginning construction before 2025) and completed within the United States. That rule increases to 55% for projects starting construction after 2026. The cost of a US product is defined as “direct materials and direct labor costs that are paid or incurred to produce the US product.” The manufacturer of a US product is considered to be the one performing the actual manufacturing process, not a distributor or secondary sales division.
This highly anticipated guidance from the Treasury Dept. was essential to growth and investment in American-made clean energy equipment and components. The US solar and storage industry strongly supports onshoring a domestic clean energy supply chain, and today’s guidance will supplement the manufacturing renaissance that began when the historic IRA passed.
At Unicorn, we have American-assembled and Asian modules for our customers. If you are looking for any equipment, give us a chance to bid on your projects. You can visit our site if you have questions about how we De-Risk your investment into solar equipment (www.unicorn-sd.com). Don’t hesitate to contact someone.
Please allow us to bid on your solar equipment needs if you have any solar equipment requirements.
News flash on JinkoSolar FL plant has federal agents send employees home so that they can investigate. Federal agents raid JinkoSolar factory in Florida – pv magazine USA (pv-magazine-usa.com)
Unicorn Solar Invites you for a meeting at RE+ in AZ Monday through Wednesday – 13th – 15th
US-made modules are available now.
Contact us 916-284-8841
ZnShine 410W BoB or Commercial 550W bifacial is in stock now
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Modules immediately available:
QCell 480W bifacial
Talesun 545W or 405W
SunPower E330
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The post Did the Biden Administration Realize that not allowing for a step-up program for the extra 10% IRA funds slows manufacturing growth in the US? appeared first on Unicorn Solar Development.
