SolarEdge Technologies announced it closed its first transaction for the sale of IRA Section 45X Advanced Manufacturing Production Tax Credits in consideration for approximately $40 million, net of discounts and fees. The credits were generated by sales of eligible, U.S.-made inverters in the first half of 2024.
“The Inflation Reduction Act and new §45X of the U.S. Internal Revenue Code have made it possible to bring high value energy technology manufacturing back to the United States, and we are pleased to announce our first sale of §45X tax credits backed by ‘Made in the U.S.A.’ solar inverters,” said Ronen Faier, interim CEO of SolarEdge. “This sale represents an important 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 the sale of inverters produced in the first half of 2024 at SolarEdge’s facility in Austin, Texas. The Austin, Texas, facility reached a target quarterly run rate of 500 MW of inverter production in the second quarter of 2024, produced over 500 MW in the third quarter of 2024 and is expected to ramp production in the fourth quarter of 2024.
“The liquidity provided by the sale of these credits will enhance our cash position, further strengthening our balance sheet and enable us to accelerate our investment in our United States manufacturing footprint,” said Ariel Porat, chief financial officer of SolarEdge. “This in turn will help us fulfill our promise to deliver a dependable supply of U.S. produced technology to our installer and developer customers.”
SolarEdge’s second U.S. facility near Tampa, Florida, began shipping Power Optimizers in Q2 2024 and is expected to reach a production capacity of approximately two million per quarter. The facility is adding commercial inverter and Power Optimizer production starting in Q1 2025.
The transaction was facilitated by the Crux platform.
News item from SolarEdge
