Empowering solar energy production in the US
Solar energy is the fastest-growing form of clean electricity in the US. The government instituted billions in incentives for US-manufactured solar hardware via the Inflation Reduction Act. Trina Solar, a global leader in solar photovoltaics, developing its first US manufacturing facility in Wilmer, Texas.
The renewable energy market in the US is growing rapidly. Between 2019 and 2023, investments in the clean energy sector grew nearly 50% to roughly $1.8 trillion last year.
Within this market, solar energy is the fastest-growing form of clean electricity, with Texas one of the top states for solar generation. In fact, solar electricity generation in the US in 2023 alone was enough to power more than 22 million American households, and the Energy Information Administration (EIA) estimates that electricity generation from solar energy will grow upwards of 75% between 2023 and 20251.
Despite surging demand, solar production in the US has struggled to keep pace, leading many US companies to rely heavily on imported materials which are often subject to high import taxes. In 2023, nearly 80% of the solar panels used in the US were imported from other countries2.
Towards growing domestic solar hardware production
In an effort to close the gap between domestic supply and demand, the US government instituted billions in incentives for US-manufactured solar hardware via the Inflation Reduction Act3.
Stepping up, Trina Solar, a global leader in solar photovoltaics (“PV”), or panels, is developing its first US manufacturing facility in Wilmer, Texas. The facility will produce solar modules, key hardware for solar technology projects, to help boost solar production in the US and meet growing global demand for the technology.
Supporting the growth of the US solar market
Societe Generale is supporting the venture and acted as Joint Lead Arranger in the financing of the manufacturing facility, contributing $80 million to the $235 million deal. The commitment is another demonstration of Societe Generale acting to advance the clean energy transition and in particular, support the growth of the US solar market. Earlier this year, the bank financed the development of Longroad Serrano, a major solar and energy storage project in Arizona.
William Turlington, who worked on the Trina deal and is Head of Battery, Mining and Industries at Societe Generale Americas, said, “Our financing of Trina’s new manufacturing facility in Texas is a significant milestone for us, the first time we’ve supported the production side of solar in the US. It also, gratifyingly, marks a new way in which we are supporting the clean energy transition.”
The manufacturing facility is expected to be finished in Q1 2025.
[1] www.pv-magazine.com/2024/01/18/us-solar-power-generation-to-grow-by-75-through-2025-says-eia/.
[2] www.csis.org/analysis/assessing-united-states-solar-power-play.