For decades, the United States held the undisputed spot in clean energy products and renewable energy technology. But the nation’s demand is being met in recent years. Besides having a low capacity for solar inputs, the United States currently lacks ingot, wafer, and cell production facilities.
Solar Energy Manufacturing for America Act (SEMA)
Suppose the US wants to achieve its goals for energy security, sustainability, and high-paying jobs in the clean energy sector. In that case, it is imperative to have a robust solar and storage manufacturing base in the nation.
Since most of today’s solar panel production takes place in Southeast Asia, factors including trade conflicts, political unrest, and environmental could interrupt the supply chain.
The Solar Energy Industries Association (SEIA) has released a new whitepaper titled Catalyzing American Solar Manufacturing. This examines the various tools to build clean energy products. It is necessary to support long-term deployment objectives.
Solar Energy Manufacturing for America Act (SEMA) enacted last week as part of the Inflation Reduction Act, is essential to this strategy. By implementing this legislation, the solar industry will be able to meet and even exceed its goal of building 50 gigawatts of domestic solar generating capacity by 2030.
The long-term tax benefit provided by SEMA supports polysilicon, solar cells, solar modules, and other essential components. American factories currently struggle to compete with international ones. To encourage private sector investments in American manufacturing facilities IRA gives tax credits like SEMA.
Solar products Manufacturing boosted by IRA
Before investing money, manufacturers need to be sure there will be a steady market for solar and storage products. Businesses must be certain that there will be adequate demand for their product in five to 10 years to build new production facilities. This demand stability is possible by the IRA’s provision of a permanent extension of the solar Investment Tax Credit (ITC). It encourages domestic production by providing ITC for initiatives that meet domestic requirements.
SEMA and the other initiatives (IRA) make up the significant industrial plan for renewable energy in American history. The solar industry has grown due to the utilization of tax credits, a long-term extension of the ITC, and funding for the DPA.
The Future of Clean Energy Products
After years of waiting, American solar panel manufacturers may now look forward to a bright future for their industry. The IRA’s set of regulations will close any gaps in the domestic supply chain and lower the cost of domestic solar. The IRA will enable the United States to become the global leader once more in renewable energy technology.
