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Solar energy manufacturing will be supported by the investment tax credit, according to final rules published by the Treasury Department.
The U.S. Department of the Treasury has issued final regulations on the CHIPS Act of 2022, designating that solar ingot and wafer production qualifies for the 48D investment tax credit (ITC).
Conventional silicon solar panel manufacturing begins with the mining and refining of raw polysilicon. The polysilicon is then converted into polysilicon ingots, which are then sliced ??into thin photovoltaic wafers. These wafers are then manufactured into cells and integrated into a frame as the final solar panel (known as a module). While later stages, such as module manufacturing, had received support from the Inflation Reduction Act (IRA) , earlier, more expensive processes lacked incentives.
Since the passage of the Inflation Reduction Act, 21 GW of wafers and 10 GW of ingots have been announced, but only 3.3 GW of ingot and wafer capacity is under construction, according to the Solar Energy Industries Association (SEIA).
Currently, silicon ingot and wafer manufacturing is supported by a 25% ITC. The Section 48D investment tax credit is available for facilities that begin construction before 2027 and does not preclude facilities from being eligible for other applicable tax credits.
“Supply chain accessibility and security remains one of our greatest challenges in the U.S. solar and storage industry. While the U.S. is a global leader in module manufacturing, we do not have any ingot and wafer facilities in operation yet, representing a critical gap in the solar supply chain,” said Abigail Ross Hopper, President and CEO of SEIA.
“Treasury’s final rules will create new opportunities for solar manufacturers and encourage upstream development of the solar supply chain,” Hopper said. |
