1. Schneider Electric collaborated with Crux to purchase Section 45X Advanced Manufacturing Production Tax Credits from Silfab Solar.
2. The tax credit purchase generated investment funds for Silfab to accelerate expansion plans for American manufacturing of solar energy.
3. Schneider Sustainability Business is advising corporations on tax credit purchase opportunities, with Silfab being one of the transactions facilitated by the business.
Schneider Electric has partnered with Crux, a sustainable finance technology company, to purchase Section 45X Advanced Manufacturing Production Tax Credits from Silfab Solar. This collaboration aims to generate additional investment funds for Silfab Solar to accelerate its plans for manufacturing solar energy in the US for commercial and residential use. The purchase of these tax credits aligns with Schneider Electric’s commitment to promoting renewable energy infrastructure and sustainability.
The transaction leverages the Inflation Reduction Act’s new tax credit transfer provisions, which allow clean energy developers and manufacturers to sell their tax credits to third parties for cash. This creates a market mechanism to attract private sector investments into energy infrastructure, innovative technologies, and advanced manufacturing. First Solar also recently sold 45X tax credits to a financial services company under this act.
Schneider Electric’s Sustainability Business has facilitated the purchase of Silfab’s tax credits, representing one of many transactions on behalf of its parent company. The Sustainability Business advises multiple corporations on tax credit purchase opportunities, working with partners like Silfab and Crux to mitigate buyer risks and access the best tax credits available. Silfab Solar’s CEO, Paolo Maccario, expressed gratitude for the partnership with Schneider Electric and Crux, highlighting the importance of unlocking the value of their tax credits to expand their solar manufacturing capacity in the US.