Premium

US tracker manufacturers eye increased domestic production thanks to Inflation Reduction Act

Facebook
Twitter
LinkedIn
Reddit
Email
Nextracker’s NX Horizon-XTR terrain-following tracker in action. Image: Nextracker.

US tracker manufacturers are planning to ramp up production capacity as they take advantage of support included in the country’s newly passed Inflation Reduction Act (IRA).

For tracker manufacturers, the landmark legislation provides a US$0.87/kg credit for the production of torque tubes and US$2.28/kg credit for structural fasteners, both of which will remain in place until the end of the decade.

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

Howard Wenger, president at Nextracker, said that with the passage of the IRA, the manufacturer is considering accelerating and increasing production at its factories and potentially several new ones.

So far this year the company has opened three factories in the US – in Pennsylvania, Texas and Arizona – as it bids to reach 10GW of annual tracker manufacturing capacity in the country.

“The IRA is the most significant policy for clean energy and climate ever, with specific tangible incentives that will accelerate the market, creating jobs making clean energy products here in the USA,” Wenger said.

“This is the first time the government is directly incentivising clean energy manufacturing at this scale which de-risks the supply chain.”

In a statement earlier this month, before the IRA was signed into law last week, Nextracker CEO Dan Shugar said the act would enable the company to immediately increase hiring at its US factories.

Tracker manufacturers can expect to see immediate demand for their products, according to the Solar Energy Industries Association (SEIA). The trade body said in a whitepaper last week that it expects to see significant new investments in domestic solar module, tracker, inverter and racking capacity within the next two to three years as a direct result of the legislation.

As well as the manufacturing support, the act extends the investment tax credit (ITC) for solar projects and adds PV plants to the list of power generation facilities eligible for the production tax credit. Both of these come with potential adders for meeting domestic content requirements.

That domestic content adder to the ITC is “incredibly important”, said Erica Brinker, CCO at Array Technologies, adding that the ten-year ITC extension “really helps developers and companies like ours to make big investments in the industry”.

Asked whether Array has plans to increase its manufacturing footprint in the US on the back of the IRA, Brinker said: “There’s no doubt… the bulk of our diversified manufacturing exists in the US, and we’ve continued to diversify those sources.

“We believe in making things in the US where it’s possible. We also try to be closer to where our customers’ projects are.”

Publishing its Q2 results earlier this month, Array Technologies revealed it more than doubled its revenues in the quarter compared with the same period last year, thanks in part to its acquisition of Spanish tracker manufacturer STI Norland.

12 March 2024
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.
21 March 2024
This special webinar will look at one of the most important changes impacting PV manufacturing today; how to establish and sustain new facilities around the world. For more than two decades, policy-makers have grappled with the challenges of nurturing domestic manufacturing sectors. Many countries have tried to create domestic sectors: Japan, Taiwan, South Korea, India, Europe and the U.S. But success stories have been rare. Mistakes seem to be repeated. And all the while, Chinese dominance of the industry has only increased. However, in the past 2-3 years, new drivers have emerged that suggest the dream of a global PV manufacturing ecosystem could be a reality. Join us as we shed light on this.
21 May 2024
Understanding the PV module supply to the U.S. market in 2024 & 2025. The conference gathers together developers, independent power producers and module suppliers to the U.S. solar market as well as EPCs, banks, investors, technical advisory and testing & certification specialists.
8 October 2024
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
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.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 28, 2024
Seattle, USA
Solar Media Events, Industry Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA