#USA #Houston #Tax Credits #SEG Solar

SEG Solar's Groundbreaking Tax Credit Transaction

SEG Solar, a prominent manufacturer of photovoltaic modules based in the United States, recently celebrated a significant achievement by closing its first sale of Section 45X Advanced Manufacturing Production Tax Credits, valued at up to $50 million. This key transaction, finalized on June 6, 2025, represents not only a substantial financial milestone for the company but also a positive step forward for the clean energy sector.

The credits generated from the production of solar modules at SEG Solar's state-of-the-art factory in Houston, Texas, mark an essential growth point for the company. In accordance with the transaction agreement, a U.S. public company will compensate SEG at a rate of $0.94 per $1.00 of tax credit value through four installments linked to the actual manufacturing output and sales of solar modules. This arrangement underlines SEG's commitment to enhancing its production capabilities while promoting clean energy innovation in the United States.

Jim Wood, the Chief Executive Officer of SEG Solar, expressed his excitement about this milestone, stating, "We are thrilled to have finalized our first Section 45X tax credit sale, marking a major financial milestone for our company. This transaction provides us with significant cash flow, strengthens our financial position and enables us to further accelerate our investment in U.S. manufacturing. By expanding our production capacity and deepening our domestic partnerships, we are not only advancing clean energy innovation but also contributing meaningfully to job creation and long-term economic growth."

This transaction comes as part of SEG's broader strategy to bolster domestic operations, ensuring a more resilient solar supply chain within the U.S. The sale's success demonstrates strong market confidence in SEG's production reliability as well as the credibility of the Section 45X credit transfer mechanism, especially in relation to credits backed by U.S.-manufactured solar technology.

The tax credits are intrinsically linked to the quantity of solar modules produced at SEG's Houston facility throughout 2025. With an impressive investment exceeding $60 million, the facility boasts an annual production capacity of 2 gigawatts, thanks to its two fully automated production lines. This advanced manufacturing setup reinforces SEG's dedication to delivering reliable, high-quality solar modules complete with an extensive domestic content.

Facilitated by Moss Adams LLP (now operating as Baker Tilly Advisory Group), this transaction signifies more than just financial gains for SEG Solar; it underscores the company’s pivotal role in advancing solar energy technologies and promoting sustainable practices. Founded in 2016, SEG Solar has swiftly established itself as a key player in the photovoltaic manufacturing sector, servicing utility, commercial, and residential markets. By the end of 2024, the company had successfully shipped over 6 gigawatts of solar modules globally.

In conclusion, SEG Solar's first Section 45X tax credit sale is a landmark achievement that reiterates its commitment to local manufacturing and renewable energy development. As they forge ahead in strengthening the domestic solar supply chain, SEG continues to enhance its production capabilities and create job opportunities, paving the way for a sustainable and economically viable future.