A coalition of USA solar manufacturers asked the Biden administration to tighten the Made in USA rules behind a clean energy tax credit, Reuters reported on July 17, 2024.
The issue
- The Inflation Reduction Act gives developers a 10 percent bonus credit when projects use enough domestic equipment.
- To qualify, 40 percent of the cost of manufactured products such as modules, trackers and inverters must be USA-made.
- The Solar Energy Manufacturers for America (SEMA) Coalition says a project can reach 40 percent with USA-made steel racking and an inverter, even if the panels come from overseas.
Why the makers object
SEMA argues that panels and cells are the hardest and most expensive parts to build, so a credit that skips them does little to build a USA solar supply chain that can compete with China. Developers, meanwhile, have pressed the administration to keep imports flowing to meet demand.
FAQ
What is the domestic content bonus?
A 10% added tax credit for clean energy projects that use enough USA-made equipment.
What is the threshold?
40% of the cost of a project’s manufactured products must be USA-made.
What does SEMA want?
Rules that make it harder to qualify without USA-made solar panels.
Source & credit
Source: Reuters, July 17, 2024: “US solar panel makers seek tougher ‘Made in USA’ rules”, by Nichola Groom.