New Alliance Of US Solar Buyers: $6bn A Year For Local Modules
Jun 24, 2022
A new alliance formed by four US solar companies has pledged to spend $6 billion a year on 6-7GW of solar modules in order to encourage the rapid expansion of domestic solar manufacturing in the US.
The four companies - AES, Clearway Energy Group, Cypress Creek Renewables and D.E. Shaw Renewable Investments - have come together to form the "US Solar Buyers Alliance" and have launched a competitive tender seeking qualified manufacturers who can commit to a long-term partnership that manufacturers will supply up to 7GW of solar modules per year, starting in 2024.
In a statement, AES said the buyers' alliance would "encourage a stable, homegrown US solar module supply chain" and that a strong PV supply chain is critical to the US solar industry and has the potential to create hundreds of thousands of jobs across the country.
AES President and CEO Andrés Gluski said, "This alliance has a large and growing solar program in the United States, and we are committed to supporting America's clean energy transition."
The Alliance says it has a large and growing solar program in the US
The initial announcement had not yet clarified whether it would require a full US supply chain or whether it would focus more on component assembly in the US. Following a request for clarification from PV Tech, an AES spokesperson said, "Our goal is to have all components made in the US." New proposal from US lawmakers: must use locally made components
While the US has begun building more polysilicon plants domestically, the level of US capacity is far below what is needed to support a fully US-made solar supply chain that would be sufficient to serve the entire US solar market. To stimulate domestic PV manufacturing, head solar manufacturers have implored the government to implement tax breaks and other financial incentives.
Craig Cornelius, CEO of Clearway Energy Group, said: "The Alliance's announcement today is just one step toward supporting the U.S. solar supply chain. As legislation moves through Congress, policymakers can expand the domestic manufacturing workforce and restore America's legacy as a manufacturing leader."
Michael Parr, executive director of the Ultra Low Carbon Solar Alliance, said, "This is exactly the kind of market signal needed to drive capacity expansion in the United States." He is a strong supporter of developing a strong US PV supply chain.
When asked which US module manufacturers are currently in a position to make a deal with the alliance, Parr told PV Tech, "First Solar, Q CELLS, Meyer Burger, Maxeon and Heliene are among them."
