Proposed 45X MPTC guidance is a catalyst for leveling the playing field and bringing solar technology production back to the US, making solar more affordable.
MORGAN HILL, Calif.–(BUSINESS WIRE)–#45XMPTC–Proposed guidance to the Inflation Reduction Act’s (IRA) Advanced Manufacturing Tax Credit (45X MPTC) equalizes the tax benefits for solar inverter and microinverter suppliers. To qualify, solar inverter suppliers must incorporate photovoltaic (PV) module-level power optimizers as a component of the overall solution. As the only supplier of power-line communication (PLC) module-level power optimizers that can be integrated with a DC-coupled PV inverter system, the addition of Enteligent’s NMAX Optimizer enables solar inverter suppliers to qualify for benefits that further their corporate competitiveness, increases PV solar adoption, and boosts US-based manufacturing.
“The proposed updated guidance for the IRA’s 45X MPTC is a game changer for the industry and makes high-efficiency solar more affordable by incentivizing US manufactured solutions,” said Enteligent CEO and Co-Founder Sean Burke. “Inverter companies in the US will live or die by this legislation – it’s that simple. Solar inverter companies that don’t take steps to maximize the benefits will be at a complete disadvantage. It’s critical that, as an industry, we understand what the legislation means and how we maximize it to our collective advantage.”
The efficiencies gained by PV module-level power optimizers, like those provided by Enteligent, must be utilized as a part of an all-inclusive system solution to obtain the full tax credit benefit. Enteligent executives will be onsite this week at the Intersolar North America conference to meet with industry representatives to solidify plans and collaborate to take advantage of this new policy.
Making Rooftop Solar More Affordable by Increasing Competition
Current IRA incentives do not treat all inverter technologies equally. It prioritizes microinverters at 11 cents per watt, despite being less energy efficient when compared to the DC-coupled PV hybrid inverter systems.
US-built residential and commercial inverters are incentivized much less. This difference in incentive amounts benefits microinverter suppliers more than energy-efficient hybrid inverters, restricting competition by allowing just a few suppliers to dominate the marketplace.
The proposed new guidance for the 45X MPTC extends the same 11 cents per watt incentive to a DC-optimized inverter system if the optimizers and inverter are sold as a full system solution and comply with the “Made in the USA” criteria. Enteligent’s NMAX Optimizer is the only plug-and-play PLC optimizer currently available to the solar inverter market. It provides more advanced functionality than current market leaders at a competitive price point without requiring a proprietary communications network.
The IRA also provides significant financial flexibility in applying the tax credits through the tax incentive transference process. If the solution provider cannot wholly take advantage of tax credits, they can sell them to another US-based business that can use them to reduce its own tax burden. For many solar companies that are not profit-making and who, by selling their tax credits, would be able to use that money for reinvestment, that’s incredibly advantageous.
Onshoring Solar Inverter Production
The 45X MPTC intends to encourage US-manufactured products. Enteligent strongly believes that combining these significant tax credits, when measured against the high tariff cost of imported solar products, will accomplish the government’s goal and vastly change the solar industry landscape.
Enteligent is working with partners to jointly re-shore manufacturing to enable a US-built solution using Enteligent’s proprietary PV module-level power optimization technology as a core component and comply with the substantial transformational domestic manufacturing criteria.
PV module optimizers have a significant role to play in increasing energy efficiency from PV solar installations. Enteligent’s NMax photovoltaic module power optimizers result in an average 10% higher electricity production from a typical rooftop solar installation. Power optimization allows each panel to operate at its highest output all the time. In addition to power optimization, Enteligent’s modules also provide rapid shutdown device (RSD) capability and panel-level performance data over PLC.
Enteligent executives are attending the Intersolar North America Conference in San Diego, California, January 17-19, 2024. If you would like to schedule a meeting, email us at enteligent@mercomcapital.com.
About Enteligent
Enteligent is a California-based developer of smart solar power optimization and solar EV charging technologies that dramatically increase energy utilization, improve returns on energy investments, and enable critical paradigm shifts in how we use energy for the upcoming green electrification revolution. Enteligent’s NMax photovoltaic module power optimizers use smart digital technology to dynamically adjust when to optimize and provide panel-level monitoring data, resulting in greater rooftop yield, more energy harvesting, and higher system reliability. Enteligent’s bidirectional DC solar EV chargers enable direct electrification from clean energy to charge faster and more efficiently, recouping up to 25% of the electricity lost by traditional means. Learn more about Enteligent at: https://enteligent.com/
Contacts
Wendy Prabhu, Mercom Communications
Enteligent@mercomcapital.com
US: +1.512.215.4452
