SolarEdge Technologies announced that it has completed the first transaction for the sale of IRA Section 45X Advanced Manufacturing Production Tax Credits for a consideration of approximately $40 million, net of discounts and fees. The credits were generated by sales of qualifying US-made inverters in the first half of 2024.
“The Inflation Reduction Act and the new §45X of the US Internal Revenue Code have made it possible to bring high-performance energy technology manufacturing back to the United States, and we are pleased to announce our first sale of §45X tax credits, powered by “Made in America solar inverters,” said Ronen Faier, interim CEO of SolarEdge. “This sale represents a significant milestone in the maturation of the §45X credit transfer market and demonstrates the marketability of credits backed by U.S.-made inverter technology.”
The tax credits were generated from sales of inverters produced at SolarEdge’s Austin, Texas factory in the first half of 2024. The Austin, Texas plant achieved a target of 500 MW of inverter production per quarter in the second quarter of 2024, produced more than 500 MW in the third quarter of 2024 and is expected to ramp up production in the fourth quarter of 2024.
“The liquidity provided by the sale of these credits will improve our cash position, further strengthen our balance sheet and allow us to accelerate our investments in our manufacturing footprint in the United States,” said Ariel Porat, Chief Financial Officer of SolarEdge. “This, in turn, will help us deliver on our commitment to delivering a reliable supply of US-made technology to our installer and developer customers.”
SolarEdge’s second U.S. factory near Tampa, Florida, began shipping Power Optimizers in the second quarter of 2024 and is expected to reach production capacity of approximately two million per quarter. The facility will add commercial production of inverters and Power Optimizer from the first quarter of 2025.
The transaction was made possible by the Crux platform.
News item from SolarEdge
