As more consumers turn to alternative energy sources, companies that produce solar panels are heeding the call. One company – Mission Solar – announced they will add 300 MW of capacity to increase annual production to 1 GW by 2024. This move will add lots of American manufacturing jobs.
About Mission Solar
Mission Solar will add a 300 MW production line to increase clean energy manufacturing from a made-in-the-USA company. For a decade, Mission Solar has made solar panels and modules in a 246,000-square-foot facility in Texas. To meet the increase in demand, the company will expand its facility.
Currently, Mission Solar makes solar panels for residential, commercial, and utility customers. Their two popular products include a 72-cell, 435-watt solar module for utility companies and a 66-cell, 300-watt solar module for commercial and residential customers. These units have efficiency ratings of 19.8% and 19.9% – respectively.
OCI Company in Seoul, South Korea, owns Mission Solar. While we don’t love that they are Korean-owned, it’s encouraging that they are investing in American manufacturing.
Why Solar is in Demand
When President Joe Biden signed the Inflation Reduction Act (IRA), manufacturing companies in the United States took notice. This act pushed solar panel manufacturers to amp up their production to meet new demands. To receive benefits from the Inflation Reduction Act, companies must use a minimum amount of American-made content.
The president of Mission Solar claims that the United States is expected to see a significant amount of solar installation – up to four times what is being installed now. By 2023, the United States wants to have 40 percent of the electricity come from renewable solar technology. To meet demand, Mission Solar needs to expand its size and workforce.
What’s in the IRA
The Inflation Reduction Act will provide tax credits to companies in the supply chain. These companies must provide parts of the module like energy storage and balance-of-system components.
The IRA includes a $30 billion investment in companies that manufacture renewable energy tools like wind turbines, solar panels, and rechargeable batteries. It also has a $10 billion investment in building facilities that manufacture electric vehicles and renewable energy tools. These investments give tax credits to companies that meet the criteria in the IRA.
How the IRA Helps Consumers
The Inflation Reduction Act also helps consumers. Before the IRA took effect, homeowners received a tax credit called the Residential Energy Efficient Property Credit. This tax credit was set to expire in 2024 and awarded a 26% credit to help pay for installing a qualifying renewable energy system.
The IRA extended the property credit to help pay for the installation costs for solar, wind, geothermal, or fuel cell systems. Now, the federal government provides a 30% tax credit until 2032. In 2033, the credit will increase to 26%, then drop to 23% in 2034. The IRA gave the property tax credit a ten-year extension to encourage homeowners to turn to renewable energy.