The U.S. Department of the Treasury has confirmed that solar ingot and wafer production facilities and equipment are eligible for a 25% investment tax credit under Section 48D of the CHIPS and Science Act of 2022. This tax credit applies to advanced manufacturing facilities that produce semiconductors, including the processing of semiconductor-grade polysilicon used in PV modules.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), expressed that these final rules will open up new opportunities for solar manufacturers and help strengthen the solar supply chain in the U.S. While the country is a leader in module manufacturing, the lack of ingot and wafer facilities poses a challenge. SEIA has been advocating for the administration to support ingot and wafer production, and they applaud the Treasury for taking steps to revitalize manufacturing and boost energy independence.
Polysilicon wafers are crucial components of solar cells and are essential for creating electrical current. However, the U.S. currently does not have operational ingot and wafer production facilities due to the complexities of manufacturing and the specialized equipment required. Incentives play a key role in encouraging wafer producers to establish these facilities.
Despite announcements for wafer and ingot production capacity, only a small fraction is currently under construction. The Inflation Reduction Act has led to 21 gigawatts of wafer announcements and 10 gigawatts of ingot announcements, but there is a need for more progress in establishing production capacity.
SEIA is committed to advancing the solar supply chain and achieving the full potential of the new incentives. The organization works with member companies and partners to advocate for policies that support job creation, fair market rules, and the growth of solar power. Through research, education, and advocacy, SEIA aims to drive the transformation towards a clean energy economy and increase solar’s contribution to U.S. electricity generation.
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