Siemens, a prominent German conglomerate, has revealed plans to commence the production of solar energy equipment in the United States starting in 2024. This strategic move involves collaborating with a contract manufacturer based in Wisconsin.
This development reflects the efforts of one of the world’s major manufacturing entities to leverage the incentives outlined in President Joe Biden’s significant climate change legislation, which is now a year old. The aim is to enhance the production of American-manufactured solar energy components and establish a competitive stance against China in this sector.
Siemens will be engaged in the manufacturing of solar string inverters, which are devices responsible for converting solar panel-generated energy into usable current. These inverters will be targeted at the utility-scale solar market in the U.S. The manufacturing process will take place at a facility located in Kenosha, Wisconsin, operated by Sanmina.
The commencement of this initiative is projected to generate around a dozen job opportunities at the factory initially, as stated by Siemens. Over time, production will be ramped up, reaching a capacity of manufacturing 800 megawatts of inverters annually.
Notably, the Inflation Reduction Act (IRA) has catalyzed a substantial $100 billion investment in the domestic solar sector within the past year. Part of this investment, amounting to $20 billion, has been allocated to the manufacturing of solar and storage solutions, according to recent information from the leading U.S. solar trade group.
Since the enactment of the IRA, more than 50 solar manufacturing facilities have been announced or expanded, as reported by the Solar Energy Industries Association. Among these developments, the capacity for about 7 gigawatts of inverters has been planned.
The IRA’s tax credits serve as an incentive for both producers and purchasers of domestically produced clean energy equipment. For instance, solar projects that incorporate American-made components, including inverters and other integral parts, can be eligible for a supplementary tax credit equal to 10% of the project’s overall cost.
Source: Reuters