Maintenance Mindset: Which clean energy components qualify for the Advanced Manufacturing Production Credit?

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As part of the Inflation Reduction Act of 2022 (IRA), the Internal Revenue Service and the Treasury Department are overseeing tax credits for U.S. investment in the clean energy manufacturing sector. On October 24, they released the final rules for the IRA’s Advanced Manufacturing Production Credit, aimed at increasing domestic investment in clean energy components, including solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals.

Read "Why domestic clean energy manufacturing still relies on foreign materials"

Eligible solar energy components

• Photovoltaic cell—PV or solar cell is a nonmechanical device that converts sunlight directly into electricity.
• Photovoltaic wafer—A thin slice, sheet or layer of semiconductor material of at least 240 sq. cm used as the substrate or absorber layer of a photovoltaic cell. “A photovoltaic wafer must be produced by a single manufacturer by forming an ingot from molten polysilicon (for example, Czochralski method) and then subsequently slicing it into wafers, forming molten or evaporated polysilicon into a sheet or layer, or depositing a thin-film semiconductor photon absorber into a sheet or layer (that is, thin-film deposition),” the rule said. Ingot and wafers must be produced in the U.S, but elements, materials and subcomponents used in production are not subject to domestic production requirements.
• Polymeric backsheet—A polymeric sheet on the back of a solar module acts as an electric insulator and protects the inner components from the surrounding environment.
• Solar-grade polysilicon—Silicon that is suitable for use in photovoltaic manufacturing is 99.999999 percent pure.
• Solar module—An assembly of connected of solar cells and equipment that produce electricity.
• Solar tracker—A mechanical system used to move solar modules in order to match the position of the sun for the best energy output. Important to note: to be a solar tracker, the product must actually move a solar module, so products such as solar thermal collectors, heliostats, and fixed tilt systems do not qualify.
• Torque tube—A structural steel support element used as part of a solar tracker. It is a cross-sectional shape, may be assembled from individually manufactured segments, spans longitudinally between foundation posts to support solar panels via a mounting attachment, and is rotated by a drive system.
• Structural fastener—These are used to connect the mechanical and drive system components of a solar tracker to the foundation, to connect torque tubes to drive assemblies, or to connect segments of torque tubes to one another.

Eligible wind energy components

• Blade
• Tower
• Nacelle—the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing.
• Offshore wind foundation
• Related offshore wind vessel—any vessel that is purpose-built or retrofitted for purposes of the development, transport, installation, operation, or maintenance of offshore wind energy components.

Eligible inverter components

An inverter converts direct current (dc) electricity from solar panels or wind energy systems into alternating current (ac) electricity.

• Central inverter—An inverter that is suitable for large utility-scale systems and has a capacity that is greater than 1,000 kilowatts.
• Commercial inverter—An inverter that is suitable for commercial or utility-scale applications, has a rated output of 208-, 480-, 600-, or 800-volt three-phase power, and has a capacity expressed on an alternating current watt basis that is not less than 20 kilowatts and not greater than 125 kilowatts.
• Microinverter—An inverter that can connect with one solar module; has a rated output of 120- or 240-volt single-phase power, or 208- or 480-volt three-phase power; and has a capacity, expressed on an ac watt basis that is not greater than 650 watts.
• Utility inverter—An inverter that is suitable for commercial or utility-scale systems, has a rated output of not less than 600-volt three-phase power, and has a capacity expressed on an alternating current watt basis that is greater than 125 kilowatts and not greater than 1000 kilowatts.

Eligible battery components

• Electrode active materials contribute to the electrochemical processes necessary for energy storage.
  • Cathode electrode materials comprise the cathode of a commercial battery technology, such as binders and current collectors.
  • Anode electrode materials comprise the anode of a commercial battery technology, such as anode foils.
  • Electrochemically active materials are the battery-grade materials that enable the electrochemical storage within a commercial battery technology (solvents, additives, electrolytic salts, electrolytes, catholytes, anolytes, separators, and metal salts and oxides.
  • Battery-grade materials are the processed materials found in a final battery cell or an analogous unit, or the direct battery-grade precursors to those processed materials. The cost of acquiring the raw material used to produce the electrode active materials;
• Battery cells—an electrochemical cell comprised of one or more positive electrodes and one or more negative electrodes, with an energy density of not less than 100 watt-hours per liter, and capable of storing at least 12 watt-hours of energy.
• Battery modules—a module with two or more battery cells that are configured electrically, in series or parallel, to create voltage or current to an end-use configuration of battery technologies.

Applicable critical minerals

• aluminum
• antimony
• arsenic
• barite
• beryllium
• bismuth
• cerium
• cesium
• chromium
• cobalt
• dysprosium
• erbium
• europium
• fluorspar
• gadolinium
• gallium
• germanium
• graphite
• hafnium
• holmium
• indium
• iridium
• lanthanum
• lithium
• lutetium
• magnesium
• manganese
• neodymium
• nickel
• niobium
• palladium
• platinum
• praseodymium
• rhodium
• rubidium
• ruthenium
• samarium
• scandium
• tantalum
• tellurium
• terbium
• thulium
• tin
• titanium
• tungsten
• vanadium
• ytterbium
• >yttrium
• zinc
• zirconium