The sale of these credits will generate incremental investments that Silfab Solar will use to expand U.S. manufacturing facilities.
Silfab Solar, a Canadian-based manufacturer with solar module and cell production facilities in the U.S., announced the sale of up to $110 million Section 45X Advanced Manufacturing Production Tax Credits.
The sale of these credits will generate “incremental investment funds,” Silfab reports, which it will use for its expansion of its U.S. manufacturing facilities.
In November the company secured $100 million of new financing to scale a new facility in South Carolina and in December signed offtake agreements for the solar cells produced in this plant.
The cell manufacturing and module assembly facility in South Carolina will initially produce 1 GWof solar cells and another 1.3 GW of modules. Silfab also operates a 1.1 GW module facility in Burlington, Washington.
“The 45X production incentive remains a formidable and necessary tool to bring manufacturing into the United States,” said Paolo Maccario, CEO and president of Silfab Solar, Inc.
The Production Tax Credit (PTC), originally enacted by the Energy Policy Act of 1992, was extended through 2034 by the Inflation Reduction Act of 2022. The transferable tax credit market allows clean energy manufacturers to transfer the production tax credits to third parties for immediate payment. The Solar Energy Industries Association points out that the incredible surge in investment, which now totals $38.3 billion in domestic manufacturing, resulted from federal policies such as 45X.
BDO USA, a Chicago-based accounting firm, served as the tax credit transfer advisor on the Silfab transaction.
