Solar Makers Push Biden To Tighten Tax Credit For US-Made Panels - Benzinga
Solar Makers Push Biden To Tighten Tax Credit For US-Made Panels - Enphase Energy (NASDAQ:ENPH), Brookfield Renewable (NYSE:BEP) - Benzinga
U.S. solar manufacturers are prodding the Biden administration to toughen the rules on a law that gives a 10% tax credit solar project developers who use materials made in the U.S.A.
The administration sought to encourage investment in clean energy and deter reliance on Chinese goods through the 2022 Inflation Reduction Act, which requires that 40% of the cost of a developer’s materials comes from U.S.-manufactured solar products.
But the Solar Energy Manufacturers for America Coalition (SEMA) said developers can reach that 40% requirement just by buying U.S.-made mounting racks and inverters, and then purchasing the solar panels overseas, Reuters reported.
Also Read: Enphase Energy: Solar Giant Shines With Golden Cross Breakout
SEMA also said the situation undermines the administration’s goals of building a robust solar supply chain to compete with China because solar panels are more difficult and expensive to produce than the other components.
Price Action: Solar panel manufacturers trended downward by Wednesday’s late-morning trading.
Enphase Energy, Inc. ENPH declined 4.36% to $111.10, while Brookfield Renewable Partners L.P. BEP slid 2.78% to $25.19 and Sunrun Inc. RUN dipped 2.49% to $16.85.
Exchange-traded funds that hold shares of Enphase, which has the largest market capitalization of $17.1 billion, according to Forbes Advisor, also fell by late morning on Wednesday.
Invesco Solar ETF TAN fell 3.06% as Global X Solar ETF RAYS declined 1.60% and Virtus Duff & Phelps Clean Energy ETF VCLN dropped 1.18%. First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN shed 3.24% and iShares Global Clean Energy ETF ICLN declined 1.92%.
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Related Knowledge Center: ENERGY BASICS: solar
Declining costs and government encouragement have resulted in a rapid increase in solar energy production in the United States over the past 10 years, although solar’s share remains small: 1.6 percent of all electricity generation in 2018. That rapid growth is projected to continue.