Schneider Electric has announced a partnership with Cruxa sustainable finance technology company, to purchase Section 45X Advanced Manufacturing Production Tax Credits from Silfab Solar.
Schneider Electric’s purchase of these tax credits generated additional investment funds for Silfab to accelerate its expansion plans for U.S. solar production for commercial and residential use.
“We are pleased to announce a tax credit transfer agreement with Crux and Silfab Solar to accelerate the growth and expansion of U.S. domestic solar production,” said Aamir Paulus, president of Schneider Electric’s North American operations. “By taking advantage of the new tax credit transfer provisions in the Inflation Reduction Act, we can promote the development of renewable energy infrastructure and contribute to a more sustainable planet.”
Under the Inflation Reduction Act (IRA), the new market for transferable tax credits allows clean energy developers and manufacturers to sell their tax credits to third parties for cash. This creates a powerful market mechanism to channel private sector investments into energy infrastructure, innovative technologies and advanced technologies. production. Thin-film panel manufacturer First Solar also announced in December 2023 that it was selling 45x tax credits to a financial services company.
The purchase of Silfab’s tax credits represents one of several transactions that Schneider Sustainability Business facilitated on behalf of its parent company. The Sustainability Business similarly advises many other companies on tax credit purchasing options, representing dozens of investors and billions in annual corporate taxes.
“We are pleased to announce this transaction with Silfab and greatly appreciate the partnership with Crux. Crux’s platform adds transparency and visibility to market opportunities and contributes to our robust process for obtaining tax credits in the market for Schneider and our enterprise customers. Our role is to help our customers know where they can access the best possible tax benefits, including with partners like Silfab and Crux, all while limiting buyer risk; This transaction is a testament to that successful process,” he said Hans Royalsenior director of renewable energy and cleantech at Schneider Electric’s Sustainability Business.
“Silfab was pleased to partner with Schneider to unlock the value of our advanced manufacturing tax credits,” said Paolo Maccario, CEO and president of Silfab Solar. “As a result, we were able to monetize our 45x tax credits, providing us with access to additional capital beneficial for expanding our U.S. solar manufacturing capacity. Silfab is deeply committed to America’s energy independence and buyers like Schneider Electric allow us to further accelerate our growth. Crux was also a key partner in this transaction, helping us connect with Schneider through their intuitive and accessible platform.”
News item from Schneider Electric
