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North American Manufacturer Raises Funds From Schneider Electric To Accelerate Expansion

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  • Silfab Solar and Schneider Electric have announced a new tax credit purchase deal 
  • Schneider, in collaboration with Crux, will buy Section 45X Advanced MPTCs from Silfab 
  • The latter plans to use the proceeds from this sale to accelerate its US expansion plans 

Silfab Solar, the Canada-headquartered North American solar module manufacturer, has secured funds to accelerate its expansion plans for US manufacturing by agreeing to a tax credit transfer deal with Schneider Electric. 

Silfab will sell its Section 45X Advanced Manufacturing Production Tax Credits (MPTC) to Schneider that has collaborated with sustainable finance technology firm Crux to procure the same. The duo hasn’t disclosed the financial terms of the deal. 

Silfab operates its module facilities in Toronto, Canada and Washington, US. It is now also building a 1 GW solar cell and 1.3 GW module factory in South Carolina. 

Solar PV manufacturers and clean energy developers are allowed to transfer their tax credits to 3rd parties for cash under the Inflation Reduction Act (IRA). Credits are available for using US-made solar polysilicon, wafers, cells and modules as well as tracker components. These will be available till 2032, but their phase-out is scheduled to begin from 2030 (see US Guidance On Clean Energy Manufacturing Credits). 

While this opens a new cash generation avenue for companies, it is also a way to channel private sector investments into clean energy space, says Silfab. 

“This deal exemplifies how the transferability of tax credits is win-win: providing simple, efficient access to capital to support Silfab’s expansion while allowing Schneider to make additional investments in the growth of the clean energy industry,” added Crux CEO and Co-Founder Alfred Johnson. 

In December 2023, American manufacturer First Solar announced deals to sell its Section 45X MPTCs to payments firm Fiserv for up to $700 million (see First Solar To Transfer IRA Tax Credits To Fiserv). 

Recently, Silfab Solar won funding from the US Department of Energy (DOE) for its US facilities where it plans to develop n-type back contact solar cells with 25% or higher efficiencies. It is developing the same on a 300 MW pilot line at its South Carolina fab alongside the n-type cell manufacturing line.  

It has also won DOE funding to develop high-efficiency building integrated PV modules in the form of silicon solar spandrels with opaque glass. It says these will be well suited for the glazed surfaces between 2 floors of commercial and high-rise buildings. Silfab plans to demonstrate this at its West Coast plant in Washington (see US Announces $71 Million Investment In Solar Manufacturing). 

Source from Taiyang News

Disclaimer: The information set forth above is provided by Taiyang News independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.

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