Hanwha to receive $140m in US tax credits with new solar panel plant - The Korea Herald

Hanwha to receive $140m in US tax credits with new solar panel plant

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Korean energy firm begins operation at production site in Cartersville, Georgia
By Kan Hyeong-woo

Published : May 7, 2024 - 15:51

Hanwha Solutions will receive additional tax credits of about $140 million from the United States government this year as it has completed the construction of a solar module production plant in Georgia and recently begun operations there, the Korean company said Tuesday.

According to Hanwha Qcells, Hanwha Solutions’ US solar energy subsidiary, the company completed the construction of solar module production lines at the Cartersville plant at the end of April. The site will be capable of producing 3.3 gigawatts per year once it undergoes a full year of production next year.

With mass production having started this month, the Cartersville plant is projected to produce solar modules of some 2 GW through the end of the year. Hanwha Qcells explained that the forecasted production will allow the company to receive the aforementioned tax credits under the Advanced Manufacturing Production Credit of the Biden Administration’s Inflation Reduction Act.

As Hanwha already has solar module production capacities of 5.1 GW at its other plant in Dalton, Georgia, the Korean company now boasts a total annual capacity of 8.4 GW, which is enough to power about 1.3 million households in America for a year.

Hanwha said the Cartersville site plans to begin commercialized production of ingots, wafers and cells -- other core parts in the solar energy industry besides modules -- next year.

Once this is achieved, the Korean brand will be the only company capable of manufacturing all key components of the solar power value chain in North America. Hanwha also expects to see even larger tax credits from the US government up to over 1 trillion won ($736 million) per year while saving logistics costs and improving efficiency.

“The ‘Solar Hub,’ Hanwha Qcells’ integrated solar production complex, is being constructed, including the successful progression of the Cartersville factory’s first commercialized module production,” said Lee Koo-yung, CEO of Hanwha Qcells.

“Hanwha Qcells will strengthen its leading position in major strategic markets including the US by increasing its manufacturing capacity and expanding its renewable energy business at the same time.”

Hanwha Solutions announced in January last year that it would invest 3.2 trillion won in expanding its solar energy businesses and building additional facilities to complete its manufacturing line in the US. According to the company, it marked the single largest investment in the history of solar energy in the US.

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