Summit Ridge Energy, a community solar developer based in the United States, has entered into a supply agreement with the German technology conglomerate Siemens for 125MW of inverters manufactured in the US.

Starting in the first quarter of 2025, Summit Ridge Energy will install the 1,000 inverters at its projects in Illinois and Virginia. These inverters, manufactured by Siemens, will be produced at Siemens’ newly operational factory in Wisconsin, USA.

By finalizing this supply agreement with Siemens, Summit Ridge has ensured the procurement of “all essential solar panel components – such as modules, racking, and inverters” from American suppliers. Additionally, the company has established a multi-year supply agreement for 2GW with Qcells, a solar manufacturer owned by a Korean firm, for modules manufactured at Qcells’ fully integrated production plant in Georgia, USA.

Having achieved a significant level of domestic sourcing, Summit Ridge surpasses the minimum requirement for the Domestic Content tax credit outlined in the US Inflation Reduction Act (IRA). According to the program, solar PV projects that incorporate a minimum of 40% domestically-manufactured components (based on cost) qualify for an extra 10% tax credit in addition to the standard 30% Production Tax Credit (PTC) offered under the IRA.

According to Mike Dillon, the Senior Vice President of Operations at Summit Ridge Energy, this agreement “allows our team to surpass the domestic content criteria set forth in the IRA. By procuring domestically made inverters, we are not only bolstering employment in the United States but also guaranteeing the dependability and excellence of our solar initiatives. This arrangement benefits both our company and the local communities we engage with, marking a mutually advantageous outcome.”

Components such as racking, trackers, and inverters within the balance of system could play a crucial role in accessing the domestic content incentive for solar PV ventures. Many American silicon module producers may face challenges in meeting the cost threshold for domestic content due to the significant dependence on imported solar cells, which constitute the most expensive segment of the module supply chain. Starting in 2025, the domestic content requirement will increase to 55%.

In a recent guest article published on PV Tech, Michael Parr, the Executive Director of the Ultra Low Carbon Solar Alliance, delved into the vital role played by the “supporting actors” in the expansion of solar manufacturing in the United States. These include glass, backsheet, steel racking, and module frame manufacturers, all of which could significantly impact the domestic content evaluation.

In July, the Solar Energy Manufacturers for America (SEMA) coalition urged the Treasury Department to revise the Domestic Content regulations by incorporating solar wafer production into the assessment, aiming to promote domestic solar manufacturing upstream.