The Biden administration's Inflation Reduction Act is offering billions of dollars in tax incentives for facilities using American equipment to accelerate decarbonization of the U.S. power sector while creating domestic jobs.
"The average project size that we do is $300 or $400 million. So you're talking about a lot of money," George Hershman, CEO of solar contractor SOLV Energy, said in an interview. A Treasury Department spokesperson said the agency was "focused on providing clarity and certainty for taxpayers and ensuring the bonus as written in the statute is workable for taxpayers."The top U.S. solar trade group, the Solar Energy Industries Association , has proposed that panels assembled in the United States should qualify for the credit regardless of where the cells inside them are produced.
But manufacturers hoping to set up or expand domestic factories for solar components want stricter rules, saying requiring solar wafers and cells to be made in America is key to producing goods that today are almost exclusively made in China.said it would delay further expansion decisions until Treasury releases its guidelines.