Manufacturing in the U.S. via prominent electronics contract manufacturers, SolarEdge recently shipped the first 20,000 domestic-content power optimizers from a facility in Florida.
MILPITAS, Calif.—SolarEdge Technologies, Inc., a developer of smart energy technology, recently reached “significant milestones in the company’s U.S. manufacturing strategy” that were “driven by the incentives offered by the Inflation Reduction Act (IRA) of 2022,” the company said in a release.
The milestones relate to manufacturing run rates, shipments of domestic content products, and the company’s role in creating U.S. jobs, according to the release.
SolarEdge is the developer of an intelligent inverter that is reported to have changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system, the company said.
SolarEdge reported that it is currently manufacturing in the United States “through leading global electronics contract manufacturers.” The first facility opened in late 2023 in Austin, Texas. It reportedly reached a quarterly manufacturing run rate of 50,000 residential Home Hub Inverters in the second quarter of 2024. Following the opening of a second facility in Seminole, Florida, the company recently shipped the first 20,000 domestic-content power optimizers, also in the second quarter of this year.
When fully ramped, the Florida facility is expected to produce approximately 2 million domestic content Power Optimizer units per quarter. It is planning to begin commercial inverter and power optimizer production in early 2025, SolarEdge said in the release.
“As a global company, we are proud to invest in American manufacturing and contribute to U.S. economic growth by bringing more technological expertise and jobs to American soil,” said SolarEdge Chief Executive Officer Zvi Lando, in the release. “Through our U.S. manufacturing strategy, we are playing a vital role in enhancing American energy independence and security by ensuring that the domestic solar industry has access to the essential and best-in-class technologies that increase power output, efficiency, and safety.”
As the two-year anniversary of the Inflation Reduction Act approaches, SolarEdge said it has already helped create approximately 1,500 new jobs between the two manufacturing facilities in Texas and Florida. The company expects that number to number to increase to about 1,750 jobs across the two facilities by the end of 2024.
“SolarEdge is proud to be part of the revitalization of manufacturing in the U.S., helping to advance and grow the country’s clean energy workforce,” the company said in the release.
The company also said it intends to produce, for residential applications, DC optimized inverter systems that meet the requirements of the domestic content definition currently set forth as guidelines by Treasury (per Notice 2024-41) in the fourth quarter of 2024, and for commercial applications in early 2025. This will enable such SolarEdge systems to qualify for the full 35.6 percent of domestic content provided by a module-level power electronic (MLPE) system. It will also support its customers’ ability to reach the required 40 percent domestic content threshold, in order to access additional tax credits in residential and commercial solar installations, according to SolarEdge.
“SolarEdge’s commitment to meeting the U.S. market through 100 percent domestic manufacturing is a strategic move aligned with our Inflation Reduction Act plan,” said Bertrand Vandewiele, general manager of SolarEdge in North America, in the release. “This initiative is creating thousands of new jobs, building a robust workforce, bolstering the local economy, and providing substantial economic benefits to the states and cities where we operate.
“As a leading supplier of residential and commercial solar technology, it is important for us to provide our installation network quicker access to domestic technology, enabling a world-class experience for our installers and their customers.”