Hanwha Solutions stands to benefit from the latest US government initiatives to promote the solar energy industry.
The U.S. Department of Commerce recently announced a temporary exemption of up to two years from any new tariffs on solar cells and modules from four Southeast Asian countries – Cambodia, Malaysia, Thailand and Vietnam. The measure will lead to an increase in demand for solar power installations in the United States. US demand for solar power installations for this year is expected to expand from the originally projected 22 GW to 30 GW.
Such an increase in demand is good news for Hanwha Solutions, which is expanding its operations in the United States.
The US government is also expected to pass the Solar Energy Manufacturing for America Act or SEMA sometime this year. It also improves the outlook for Hanwha Solutions’ US business. The bill seeks to provide tax benefits to US-made solar products, and is currently pending in the Senate after being passed by the House of Representatives. Hanwha Solutions has a commercial site in the United States, which allows the invoice to increase its cost competitiveness.
Since 2019, Hanwha Solutions has operated a 1.7 GW solar module factory in Dalton, Georgia, which is the largest factory in the United States. Recently, it announced a plan to build a 1.4 GW solar module factory in the United States by investing another 200 billion won. The new plant is expected to enter into service in the first half of 2023 and will have a module production capacity of 3.1 GW, the largest for a single operator in the United States.
Hanwha Solutions is considering ways to increase investment in the global solar energy value chain as well as expand its module production capacity if the Solar Energy Promotion Bill is passed.
In this regard, Hanwha Solutions recently signed a power purchase agreement (PPA) with the US state of Wyoming to supply power to local energy companies after completing a 150MW solar power plant by end of 2023. A PPA means that electricity consumers such as car companies buy electricity at a price in a contract with a renewable energy producer for a certain period of time. For the first time, Hanwha Solutions will directly carry out the core processes of a downstream business, including utility-scale solar power plant business development, module supply, design, procurement and engineering, procurement and construction (EPC) and the signing of a PPA.