Israel-based SolarEdge Technologies Inc , a supplier of photovoltaic (PV) inverters, has completed its first sale of tax credits under the US Section 45X Advanced Manufacturing Production Tax Credit program, securing $40 million, net of discounts and fees.
The credits were accrued from inverters produced during the first half of 2024 at SolarEdge's manufacturing facility in Austin, Texas.
This transaction underscores the maturing market for the Section 45X tax credit transfer, noted interim CEO Ronen Faier, who said it highlights the demand for tax credits tied to U.S.-produced inverters.
The funds raised from the sale will strengthen SolarEdge's cash reserves, enabling the company to advance its manufacturing capabilities in the U.S., added CFO Ariel Porat.
SolarEdge's Austin facility achieved a quarterly production run rate of 500 megawatts (MW) of inverters in the second quarter, surpassing this rate in the third quarter. The company plans to ramp production further in the final quarter of 2024. SolarEdge also operates a second U.S. facility near Tampa, Florida, which started shipping power optimizers earlier in the year.
Recently, the U.S. Department of the Treasury issued final rules confirming that SolarEdge's DC-optimized inverter systems qualify for the $0.11 per watt tax credit. SolarEdge is scheduled to report third-quarter results on November 6. In the second quarter, the company posted a net loss of $130.8 million as revenue dropped 73% year-on-year.
