7X Energy stockpiles 2GWac of inverters to make most of closing ITC window

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
SunPower has partnered with Hannon Armstrong Sustainable Infrastructure Capital to acquire and deploy 200MW of 'safe harboured' solar panels before the year's end. Source: SunPower.

Solar and storage developer 7X Energy has spent more than US$100 million to stockpile 2GWac of Power Electronics inverters in order to take advantage of the full investment tax credit (ITC) before it starts to taper next year.

The procurement is being billed by the developer as one of the largest purchases by an independent power developer in the US. The HEM medium-voltage inverters will be stored in Texas, where 7X Energy is headquartered.

News of the megadeal comes just days after US residential and commercial solar installer SunPower revealed that it had partnered with Hannon Armstrong Sustainable Infrastructure Capital to acquire and deploy 200MW of 'safe-harboured' solar panels.

The federal tax credit will step down from 30% for projects that begin construction at the end of this year, to 26% in 2020, 22% in 2021, before dropping to 10% for commercial customers and to zero for residential installations in 2022.

The government authority responsible for the ITC, the Internal Revenue Service, deems a project’s construction to have officially “begun” when five percent of its total cost has been spent. Purchasing inverters and panels is one of the simplest ways project backers can meet that benchmark and qualify their project for the existing ITC rate.

This framework has been informally dubbed the “solar safe habour agreement” since it was published in June 2018.

7X Energy president Clay Butler said in a statement on Tuesday that the developer wanted to act “early in the year before supply ran out.” He added that the firm opted for inverters as they were less prone to price volatility than modules and also because of their application in storage systems.

Debt financing for the inverter deal was provided by Forethought Life Insurance Company, a subsidiary of Global Atlantic Financial Group.

US solar prospects amid trade tensions and a changing incentive landscape will take centre stage at Solar Media's Solar & Storage Finance USA in New York on 29-30 October 2019.

Read Next

November 17, 2021
US solar installer SunPower has launched its ConnectedSolutions virtual power plant (VPP), enabling SunVault battery energy storage system (BESS) customers in Massachusetts, Rhode Island and Connecticut to earn “hundreds of dollars a year” for allowing utility access to their stored energy during peak demand
November 4, 2021
US solar installer SunPower has downgraded its full year 2021 revenue guidance, pointing to delays in its commercial and industrial projects business.
PV Tech Premium
November 3, 2021
In this exclusive video from PV Tech publisher Solar Media’s Solar & Storage Finance USA event last month, a panel of supply chain experts discuss immediate challenges and potential remedies to the situation.
November 3, 2021
nverter manufacturer SolarEdge posted record revenues from its solar division in Q3 2021 despite a COVID-related shutdown at its manufacturing facility in Vietnam impacting its ability to meet demand.
October 27, 2021
Microinverter supplier Enphase Energy reported record quarterly revenue in Q3 2021 but stressed the importance of price increases to help offset price volatility in its supply chain.
PV Tech Premium
October 8, 2021
SunPower’s move to double down on its residential business forms part of a strategy that will see the company aim to lower supply chain costs, expand its geographical footprint and add to its product portfolio.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
December 1, 2021
Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal