The German giant Siemens (SIEGn.DE) said on Tuesday that a Wisconsin-based contract manufacturer will begin producing solar energy equipment in the United States in 2024.
The German giant Siemens (SIEGn.DE) said on Tuesday that a Wisconsin-based contract manufacturer will begin producing solar energy equipment in the United States in 2024.
The announcement of the production of solar energy equipment is an effort by one of the largest manufacturers in the world to take advantage of incentives under President Joe Biden’s landmark climate change bill, which was passed a year ago, to increase American production of solar energy components and to compete with China.
Inverters for solar string systems will be produced by Siemens for the American utility-scale market, the company said in a statement. These gadgets convert the solar panel energy into usable power. The products will be made in a Sanmina (SANM.O) facility in Kenosha, Wisconsin.
Brian Dula, vice president of electrification and automation at Siemens Smart Infrastructure USA, asserts that “working with Sanmina to establish this new production line, Siemens is well positioned to address supply challenges our country is facing as we work to localize production for green and renewable infrastructure.”
The company claims that the work for Siemens will at first result in up to a dozen jobs being created at the site. Every year, the factory will be able to produce 800 megawatts of inverters.
The Inflation Reduction Act, according to the biggest U.S. solar trade group, has stimulated $100 billion in investment in the American solar industry over the past year, including $20 billion for manufacturing of solar and storage.
Since the IRA was passed, more than 50 new or expanded solar manufacturing facilities have been proposed or announced, according to data by the Solar Energy Industries Association. This includes an approximate 7 gigawatt capacity for inverters.
IRA tax credits promote the production and acquisition of domestic renewable energy equipment. For instance, solar projects that employ machinery made in the United States, such as inverters and other components, may be eligible for a bonus tax credit worth 10% of the project’s cost.