Microsoft Buys 2.5GW Of Qcells Solar Modules

Qcells will supply US-made solar modules for Microsoft's solar project and will be responsible for engineering, procurement and construction work.

Technology giant Microsoft has announced that it has signed a power purchase agreement (PPA) with Qcells for over 2.5 GW of solar energy. In this partnership, Qcells will be responsible for the supply of solar modules as well as engineering, procurement and construction (EPC) services.

Qcells will work with Microsoft to develop solar projects that will contribute to Microsoft's goal of 100% renewable electricity by 2025 and will support the new energy supply chain in the US.

Building a resilient solar supply chain is critical to advancing the global green energy economy," said Brad Smith, Microsoft's vice chairman and president. Microsoft's partnership with Qcells will help make this vision a reality by bringing innovation and investment to rural Georgia."

Qcells - a subsidiary of Seoul, Korea-based Hanwha Solutions - announced that it will invest more than $2.5 billion to build a complete solar supply chain in the United States, from polysilicon procurement through to module production. This will make Qcells the first company to establish a fully integrated silicon-based solar supply chain in the US.

The company believes that Senator Ossoff's Solar Manufacturing in America Act - now part of the Inflation Reduction Act (IRA) - has played an important role in helping to attract more investment to the U.S. The IRA provides significant tax credits for clean energy manufacturing industry with significant tax credits.

Qcells plans to build a new state-of-the-art plant in Bartow County, Georgia, specialising in the production of 3.3 GW of solar ingots, wafers, cells and finished modules. The company also has a facility in Dalton, Georgia, where it will assemble the remaining 2 GW of modules. Qcells plans to increase production at the Dalton facility by a further 5.1 GW, so that its total production in Georgia is expected to reach 8.4 GW by 2024.

President Joe Biden said: "Today's announcement that Hanwha Qcells will make the largest solar investment in U.S. history is a big deal for Georgia's working families and for the American economy. This investment is a direct result of my economic stimulus package and the Inflation Reduction Act."

Microsoft ranks as the fifth largest corporate solar purchaser, according to the Solar Energy Industries Association, and the high-profile deal is likely to move it up the rankings. There are currently 23 US companies with at least 100 MW of installed solar capacity, compared to just 11 in 2019. Of the top 25 companies in the report, 18 are already working towards the goal of being 100% renewable or carbon neutral.