In response to the Internal Revenue Service's (IRS) guidance on domestic content tax credits introduced under the Inflation Reduction Act (IRA), Array Technologies, a leading solar tracker supplier, has partnered with Lock Joint Tube, a manufacturer of structural and mechanical-grade steel tubing. The collaboration aims to strengthen the US solar power and manufacturing sectors while tapping into the benefits of domestically-sourced components and materials.
The new steel mill, operated by Lock Joint Tube, was launched last month and is set to play a crucial role in supplying steel tubing for Array Technologies' utility-scale photovoltaic (PV) projects across the country. This move is particularly advantageous as the IRS offers a 10% bonus to renewable energy projects that meet specific criteria for domestic content. To qualify for the extra tax credits, steel products used in a solar PV array must be 100% US-made, a requirement that Array Technologies and Lock Joint Tube are well-positioned to fulfill.
One of the significant benefits of this partnership is the boost to the US job market. The introduction of the new steel mill is expected to create new manufacturing jobs, while the implementation of automation technology in production will enhance efficiency and productivity.
Kevin Marks, President at Lock Joint Tube, emphasized the significance of using domestically-sourced steel, asserting that this move is vital to support the expansion of clean, renewable energy in the country. By maximizing domestic steel content, the US-based supply chain for solar power projects receives a much-needed boost, driving the growth of the renewable energy sector.
Recent findings from the Interstate Renewable Energy Council (IREC) revealed a 3.5% increase in jobs within the US solar sector between 2021 and 2022, underscoring the industry's promising growth trajectory.
The IRS' domestic content guidelines further stipulate that the rest of a PV system, including modules, inverters, balance-of-system components, and cells, must meet a minimum 40% domestic content threshold to qualify for the 10% adder. This threshold is set to increase to 55% by 2026, encouraging solar companies to source more components domestically.
Array Technologies' revenue witnessed a substantial 50% growth in 2022 compared to the previous year, demonstrating the positive impact of the solar industry's continuous expansion.
