Hanwha Q CELLS expands in U.S. to become largest solar module producer

Hanwha Q CELLS Georgia plant [Source : Hanwha Q CELLS]

Hanwha Q CELLS Co., solar panel division of South Korea’s Hanwha Solutions Corp., is set to become the single largest producer of solar power modules in the U.S. with 3.1 gigawatt (GW) annual capacity with the expansion of its Georgia plant.

According to Atlanta Journal-Constitution (AJC), a local press in Georgia, and other media outlets on Tuesday, Hanwha Q CELLS will spend 200 billion won ($160.3 million) to expand its existing 1.7 GW solar module factory in Dalton, Georgia, to add 1.4 GW capacity, and build a new one in nearby Bartow County.

Hanwha Q CELLS built a solar module facility in Georgia and launched operations from 2019 after the U.S. government announced plans to impose tariffs on solar module imports in 2018. The Eagle 1 factory in Dalton has a line that goes as long as 200 meters. It bundles and assembles solar cells.

The additional facility in Dalton is estimated to be built in similar size for operations.

Hanwha Q CELLS will boast an annual production capacity of 3.1 GW once construction of the additional Dalton factory is complete to become the single largest solar module producer in the U.S.

Globally, Hanwha Q CELLS will be capable of producing 13.8 GW solar modules which includes 4.5 GW in Korea and 6.2 GW in Malaysia and China. The company will be able to supply 6 percent of the global solar market estimated at 200 GW.

The completion of the new plant in Bartow County will add even further to overall capacity.

Hanwha Q CELLS is No. 1 manufacturer in the U.S. solar panel market. It is the dominant player particularly for residential and commercial panels while it competes with low-cost companies for panels of industrial use.

Hanwha Q CELLS’ expansion in the U.S. comes as it seeks to benefit from the U.S. Inflation Reduction Act (IRA) that offers production tax credits (PTC) for electricity generated by renewable energy resources and investment tax credits (ITC) for production facility investments.

Hanwha Q CELLS will be eligible for tax deduction on 30 percent of its investment as of this year.

Under ITC, companies that purchase Hanwha Q CELLS modules and produce energy will benefit from up to 2.6 cents per kilowatt hour tax exemption this year.

According to AJC, Georgian Governor Brian Kemp will announce Hanwha Q CELLS’ investment plans in a meeting with Georgia Chamber of Commerce Wednesday.

Georgia has been expanding ties with Korean companies. Auto giant Kia Corp. built a manufacturing plant in West Point in 2006, SK on Co., formerly SK innovation Co. a battery plant in Jackson County. Hyundai Motor Co. also launched construction of an electric vehicle factory in Brian County in November last year.