California-based SB Energy has initiated commercial operations at its 900MW Orion I, II, and III solar PV projects in Texas, known collectively as the “Orion Solar Belt.” Located in Milam County, northwest of Houston, these projects are set to qualify for the domestic content bonus credit under the Inflation Reduction Act (IRA).
The Orion Solar Belt utilizes over 1.3 million Cadmium Telluride (CdTe) thin-film modules, manufactured by First Solar at its facility in Perrysburg, Ohio. First Solar is also expanding its production with new plants in Alabama and Louisiana, aiming to reach 14GW of production capacity by 2026. The project also includes Nextracker smart solar trackers, with the majority of components sourced domestically.
This domestic content bonus offers an additional 10% tax credit on top of the IRA's 30% production tax credit, applicable to projects with at least 40% US-made components, a figure set to rise to 55% next year.
US Secretary of Energy Jennifer Granholm praised the project, noting that the Orion Solar Belt exemplifies the Biden administration's clean energy strategy, highlighting its role in powering data centers and setting the stage for a carbon-free future.
The project's largest power purchase agreement (PPA) partner is Google, which has committed to operating entirely on carbon-free energy by 2030. The Orion Solar Belt represents Google's largest solar energy investment globally, supporting its $1 billion plan to expand cloud and data center infrastructure in Texas.