One year after the enactment of the Inflation Reduction Act (IRA) in 2022, which established a durable industrial policy supported by substantial incentives for both the production and demand of solar components, prominent global corporations are making substantial investments in U.S. manufacturing. Moreover, the major international corporations are making significant investments in American manufacturing. This will help curtail the supply shortages in the U.S. market.
Companies like Trina Solar, Canadian Solar, and Longi have plans to build solar manufacturing plants with a total capacity of 15 gigawatts (GW). Each of these facilities requires an investment ranging from $200 million to $600 million.
Before the Inflation Reduction Act (IRA), the United States had around 7 gigawatts (GW) of module manufacturing capacity in 2021. According to the American Clean Power, within eight months, there were announcements for 46 utility-scale clean energy manufacturing facilities. Moreover, these announcements will create over 18,000 jobs in the United States.
Canadian Solar is expanding its manufacturing capacity in the United States in response to increased customer demand. They are taking advantage of a 10% additional investment tax credit, which is offered to projects that meet specific criteria for using U.S.-made components. This incentive is prompting developers to reevaluate their procurement choices.
Three Tricons that will Curtail Supply Shortages in the U.S:
Trina Solar has plans to invest approximately $200 million in developing a manufacturing facility in Texas. This plant will have an annual production capacity of 5 Gigawatt (GW). Moreover, Trina’s forthcoming factory will launch its Vertex module line, featuring 210 mm wafers, starting in 2024. The development of this Trina facility generates around 1,500 job opportunities within the local community.
Longi is likely to launch a strategic collaboration with utility-scale developer Invenergy. Together they will develop a 5 gigawatt (GW) panel assembly venture in Ohio. Invenergy will invest over $600 million in the construction of an extensive crystalline silicon panel manufacturing facility. This initiative will generate more than 850 job opportunities at the site.
Canadian Solar will expand its manufacturing capacity by constructing a new 5 gigawatts (GW) facility in Mesquite, Texas. However, this site will be dedicated to the production of TOPCon solar panels. Canadian Solar plans to invest $250 million in the establishment of this factory. This is likely to generate approximately 1,500 jobs during its development.
Overall, these strategic investments in domestic manufacturing, particularly in the solar industry, have the potential to bring about substantial economic growth, job creation, and supply chain resilience. These investments not only bolster the nation’s clean energy infrastructure, but also pave the way for a sustainable and resilient clean energy supply chain.