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U.S. Solar Developer Takes Risk of Module Production

        A series of deals signed over the past six months show that solar panel manufacturers are using long-term solar module supply agreements with developers to fund plants.
Since the Inflation Reduction Act (IRA) was signed, more than a dozen companies have announced 50–80 GW of solar silicon, wafer, cell and module manufacturing capacity in the US. The roadmap of the Association of Solar Energy Producers optimistically sets the production capacity of solar modules at 50 GW. As a result, some analysts see the United States as a potentially strong export market for solar panels.
This is irrefutable proof that even a little bit of sound industrial policy – in this case the IRA – can have a huge impact on local business and national security.
A new development is the attraction of solar energy developers to solar module assembly plants. The motive for their participation was the need to ensure module capacity and product compliance with Made in America standards. Meeting this criterion is important because projects that qualify for the 10% plus investment tax credit under the Inflation Reduction Act.
This is different from what happened in the past when module manufacturers such as Canadian Solar, First Solar and Hanwha started development.
Meyer Burger has expanded the capacity of its Arizona plant to 3 GW per year and signed an agreement with DE Shaw Renewable Investments, one of the largest developers in the US, for 3.75 GW of modules between 2024 and 2029. In particular, DE Shaw will make “significant annual upfront payments” to help Meyer Burger fund the capacity needed to meet such delivery requirements. The facility – prior to this partnership – had an estimated capacity of 1 GW/yr.
First Solar’s investment appears to be driven largely by strong demand. As of February 2023, we think they will be sold out by the end of 2025. The company recently announced a new plant capable of producing 3.5 GW DC modules per year, which will be operational in 2025. In addition, there is a GW of DC per year equal to 0.9 to expand existing capacities.
A few months after the announcement, the company signed an agreement – ​​starting in 2025 – to install 4.9 GW of capacity over five years. The deal will account for 28% of the plant’s output in the first five years.
In 2022, months before the signing of the IRA, six solar energy developers – AES, Clearway Energy Group, Cypress Creek Renewables and DE Shaw Renewable Investments – submitted requests for proposals to US solar module manufacturers to supply 7 GW from 2024. number of solar modules per year.
In October 2022, we will even see solar panel manufacturer Solaria merge with solar panel installation company Complete Solar to form a new company called Compete Solaria. Some in the residential solar market have dismissed the news as Solaria products have become more difficult to obtain, but the move makes sense for residential installers who want to lock in a high-quality product at a reasonable price.
We saw the connection between developers and modules back in 2018 when JinkoSolar opened a manufacturing facility in Jacksonville, Florida and signed an agreement with NextEra, America’s largest renewable energy company, to run the facility at full capacity.
Various economic models are driving solar panel production in the US and China over China, so it’s not surprising that these hybrid relationships are evolving. Such partnerships not only help manufacturing companies finance plants, but also help energy development companies procure the modules they need at reasonable prices and without the hassle or risks associated with imports.
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Once the United States makes a decision and decides to “lead the world: and achieve zero pollution in the United States… in all energy sectors… …not just in replacing polluting fossil, nuclear, etc. power plants with solar energy , non-polluting…!! million km2 of agricultural land will be used for the aforementioned Zero Pollution Earth, then the US is indeed in a good position. SS It’s so easy..!!! The social cost of this pollution (PMP), America may even get smarter and take the leap. Adopt a common, flat, fair and fair tax of $0.28/kWh. PMP tax on 10 trillion kWh/year of energy use today. Raise $2.8 trillion per year. By 2050 Funding the planet a year earlier and achieving zero pollution… of the $40 trillion that was levied/collected… paid in full by the polluters only… and then the last 200 years have been damaging the environment.
[A PMP tax of $0.28/kWh results in a global social cost of $36.5 trillion per year due to 9 million premature deaths per year ($1 million per victim) and 275 million DALYs of suffering (100 $000 for DALY pain). The energy used today is 130 trillion kWh for a round-the-world trip].
Yes…. The US will need a permanent 500GW/yr PV industry…as 30 year old end-of-life PV panels are ready to be replaced…every year…
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Post time: May-12-2023