BBB renewables provisions would enable industry to ‘move rapidly’ and should be a ‘national priority’, manufacturers say

US-based tracker manufacturers would receive tax credits under a recent draft of Build Back Batter. Image: Nextracker.

US-based solar tracker manufacturers have welcomed the inclusion of domestic manufacturing incentives for tracker components included in a draft version of the country’s Build Back Better (BBB) bill, saying the proposed measures would drive job creation.

While the fate of the bill, which has been the cornerstone of US president Joe Biden’s policy agenda, remains uncertain following the announcement on Sunday from key Democrat Senator Joe Manchin that he would not vote for it, tracker manufacturers have been encouraged by policy support featured in the package.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

A version of the bill from the Senate Finance Committee, published earlier this month, would see the advanced manufacturing production credit component of the legislation – which also includes support for US manufacturers of modules, cells, wafers and solar-grade polysilicon – expanded to provide credits for producers of trackers and inverters.

In comments sent to PV Tech Premium last week, Nextracker CEO Dan Shugar said BBB will ensure that clean energy jobs continue to be created in the US.

“The renewable energy provisions in the Build Back Better Act are a green light to US solar companies like Nextracker and other manufacturers to move rapidly to increase investment in people, factories, and raw materials,” Shugar said.

Proposals from the finance committee would see tax credits provided for torque tubes, longitudinal purlins and structural fasteners, with the full credit applied to components sold before 2029, before phasing out by 25% percentage points each year until it is unavailable as of 2032.

After closing deals earlier in the year to provide its NX Horizon trackers for a 1.5GW portfolio of US projects from asset manager Arevon Energy as well for 728MW of solar plants in California and Texas being developed Intersect Power, Nextracker revealed last month it has now surpassed 50GW of shipments globally.

Another tracker manufacturer that would be boosted by the finance committee’s BBB proposals is Array Technologies, which may disproportionally benefit given its established US footprint and ability to source around 90% of its content domestically, according to a research note published last week by investment bank ROTH Capital partners.

The renewable energy policies in BBB would “foster innovation and create a level playing field to compete, and we believe this will greatly benefit the US economy and our planet”, said Array Technologies in a statement sent on Friday.

“Encouraging the production of equipment that will allow our economy and society to decarbonise should be a national priority,” the statement added.

The company said that maintaining its manufacturing operations in the US is core to its identity, even as it expands internationally. Array last month secured a US$652 million deal to acquire Spanish tracker manufacturer STI Norland, touting the company’s strong position markets such as Brazil.

The proposed BBB tracker manufacturing support would represent a welcome boon for Array after the company saw its profitability decline during Q3, as the firm flagged high shipping costs and supply chain challenges.

Array said domestic manufacturing incentives as well as other proposed policies included in BBB – such as expanded investment tax credits for solar projects – would result in a “substantial increase in demand” for its projects and the PV sector in general.

“We look forward to the additional jobs that will be created in the US, both within our own company and within our supply base, as solar further establishes itself as an economic engine.”

While the outlook for BBB, in the wake of Manchin’s announcement last weekend, appears bleak, the White House has refused to concede defeat. Speaking at a press conference held yesterday, White House press secretary Jen Psaki insisted that while it was Biden’s preference to pass the act before the new year, work was continuing on the legislation.

21 August 2024
5pm BST
FREE WEBINAR -This webinar will feature the perspectives and views of PV Tech’s Head of Research, Dr. Finlay Colville, on how the U.S. PV manufacturing landscape is changing today and when we might expect additions to encompass cells and wafers. This will be followed by a PV Tech special – a look inside one of the first new PV module fabs built in the U.S. this year; SEG Solar’s new site in Texas. Join Jim Wood, CEO at SEG Solar, as he walks around the new factory showing key features and explaining the rational for SEG Solar in making this investment into U.S. PV manufacturing in 2024.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.

Read Next

July 18, 2024
On Wednesday (17 July), the Tasmanian government in Australia removed a ‘speed limit’ measure that has prevented state-owned utility Hydro Tasmania from developing large-scale renewable energy projects, such as solar, without a "cumbersome" Parliamentary process.
July 17, 2024
Liquidity is rising at great pace in US tax credit transferability for clean energy, helping lenders become comfortable with the market.
July 16, 2024
North America is expected to be the major market for solar trackers in the upcoming years driven by increased installations in the US.
July 9, 2024
Spain has passed a regulation regarding the installation of floating solar PV (FPV) on reservoirs in the country.
July 9, 2024
The Victorian government has committed US$2.7 million (A$4 million) for seven projects to build solar installations and heat pumps.
July 8, 2024
The US needs to include wafer production in the domestic content incentives, writes NexWafe CEO Davor Sutija.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA