Solar PV inverter manufacturer SolarEdge Technologies has entered safe harbor agreements for its inverters, power optimizers, and batteries produced in the US with 2 residential solar companies. One of them is Sunrun and the other an undisclosed company, said to be one of the largest financiers of residential solar installations in the US. Under the agreements, SolarEdge will provide its products to these companies to be paired with other US-made equipment. This will help the 2 companies qualify for domestic content bonus tax credits. It will complete the deliveries of these products throughout 2025. “By safe harboring domestically produced inverters, Power Optimizers, and batteries, SolarEdge’s installation and financing partners plan to lock in prevailing investment and domestic content bonus tax credits, providing business planning clarity and greater certainty around project economics,” stated SolarEdge. Additionally, the Israel-headquartered inverter manufacturer has also closed its 2nd transaction for the sale of 45X Advanced Manufacturing Production Tax Credits. Some of these were generated in Q3 2024 and were backed by both US-manufactured inverters and US-manufactured power optimizers. These became eligible for the US government’s $0.11/W advanced manufacturing production credit (see US Guidance On Clean Energy Manufacturing Credits). Previously, SolarEdge raised around $40 million from the sale of these credits for solar inverters produced at its Texas factory (see SolarEdge Raises $40 Million With 45X US Tax Credits Sale). SolarEdge CEO Shuki Nir said, “The safe harbor agreements and 45X credit sale announced today are important milestones on our recovery path. They improve visibility into our business outlook, and we believe that they will enhance our cash position, strengthen our balance sheet and further advance our priority of financial stability.” Nir recently replaced Ronen Faier as the CEO of SolarEdge at a time when the company is undergoing strategic changes to secure financial stability and profitability. SolarEdge shut down its energy storage business in late 2024 to focus solely on its core solar business (see SolarEdge Closing Down Energy Storage Business Division).
