Summer2023

SolarIndustryUpdate

DavidFeldman,NREL

KrystaDummit,BGSContractorforSETOJarettZuboy,NREL

RobertMargolis,NREL

PhotobyJoeDelNero,NREL79505

August3,2023

NREL|2

Agenda

1GlobalSolarDeployment

2U.S.PolicyUpdates

3U.S.PVDeployment

4PVPricing

5GlobalManufacturing

6U.S.PVImports

7VirtualPowerPlants

ExecutiveSummary

U.S.Photovoltaic(PV)Deployment

?InQ22023,theInternalRevenueService(IRS)releasedinitialguidanceonseveralkey

provisionswithintheInflationReductionAct,including:

laborrules

,bonuscredits

(1

,2

,3

),

directpayment

,and

transferability

oftheInvestmentTaxCredit(ITC)andPropertyTaxCredit(PTC),aswellastheAdvancedEnergyProjectCredit(

48C

).

?Attheendof2022,morethan263,000U.S.employeesspentmostoftheirtimeonsolar.Anadditional82,250workersspentlessthanhalftheirtimeonsolar-relatedwork.

?TheUnitedStatesinstalled5.7GWac(6.1GWdc)ofPVinQ12023—andthelargestQ1onrecord;asignificantportionwasinTexas,Florida,andCalifornia.

?34%ofU.S.utility-scalePVand~21%ofallU.S.PVsystemsbuiltin2022usedCdTepanels.

?TheUnitedStatesinstalled~2.1GWh(0.8GWac)ofenergystorageontotheelectricgridinQ12023.

?89%ofGWhofutility-scalebatterystorageinstalledin2021wasco-locatedwithanelectricgenerationasset(orretiredplant),howeverin2022thatnumberdroppedto59%.

PVSystemandComponentPricing

?Globalpolysiliconspotpricesdroppedabout70%frommid-Apriltomid-July,reachingthe$8/kglevelforthefirsttimein3years.

?Globalmodulepricesreachedtheirlowest-everpointat$0.17/Wbecauseof

oversupply,competition,decreasingmodulecommodity(e.g.,silver,aluminum)andfreightprices,andadeclineinthevalueoftheyuanvs.thedollar—despitecontinuedstrongdemandformodulesworldwide.

?InQ22023(first2months),theaverageU.S.moduleprice($0.37/Wdc)wasup2%q/qwithnochangey/yandmodulestradingata76%premiumovertheglobalspotpriceformonofacialmonocrystallinesiliconmodules.

?LevelTenreportsthatafterseveralyearsofrisingprices,solarpowerpurchaseagreement(PPA)pricesintheU.S.showedsignsofstabilizationinQ2.

?FromH12022toH12023,distributedPVsystempricesgenerallyincreasedinnominaldollarsbutweredownwhenaccountingforinflation.

GlobalManufacturing

?InQ12023,marginsformostPVcompaniesincreasedasdemandincreased,aidedbyasignificantdropinpolysiliconprices.

?Availabledatafor8oftheleadingPVmodulesuppliersfoundthatQ12023shipmentswere61%higherthanshipmentsfromthesecompaniesinQ12022.

?SincetheInflationReductionAct’s(IRA’s)passage,over185GWofU.S.manufacturingcapacityhasbeenannouncedacrossthesolarsupplychain,including44separatenewmanufacturingplantsand6expansions.

U.S.PVImports

?12.2GWdcofPVmoduleswereimportedintotheUnitedStatesinQ12023,+17%q/qand+149%y/y.

?790MWdcofcellswereimportedinQ12023,up13%q/qand32%y/y.

?DespitetheincreaseinPVcellimportsinQ12023,asofMay,PVcellimportsarestillontracktoreach2.5GWdcoftheSection201quotadespitethequotabeingraisedto5.0GWdclastyear.

Alistofacronymsandabbreviationsisavailableattheendofthepresentation.

NREL|3

NREL|4

Agenda

1GlobalSolarDeployment

2U.S.PolicyUpdates

3U.S.PVDeployment

4PVPricing

5GlobalManufacturing

6U.S.PVImports

7VirtualPowerPlants

?In2022,afterseveralyearsofstagnationcausedbytheCOVIDpandemic,arecord9.5millionoff-gridsolar

productsweresoldin2022.Collectively,theyhadacapacityof94MW.

?ThefirstSpanishconcentratedsolarpower(CSP)plantinadecadecouldbebuiltthisyearafterthecentral

governmentapprovedtheEnvironmentalImpact

Declaration.The110MWSolgestCSPplantistobebuiltalongwith40MWofPV.

CSPUpdate

?InJune2023,Chilepublisheddraftrulesforits2023energyauctionwhichSolarPacesbelieveswill

incentivizedispatchableCSP

.Theauctionincludesincentivesfornon-variablerenewableslikeCSP,asplittingoftheauctionintothreegeographiczones,anincreaseincontractlengthto20years,andmayallowthetransferofsystemiccostscausedbyshort-termmarketfactors.

?InJune2023,Heliogenannouncedits

firstsolarthermalhydrogencustomer

–thecityofLancaster,California.Heliogen’sProximaplant,locatedinLancaster,willprovidethehydrogen.Theplants

will

contain1,000-2,000heliostatsanda1.8GWeBloomEnergyelectrolyzer.

?ThefirstSpanishCSPplantinadecade

couldbebuiltthisyearafterthecentralgovernmentapprovedtheEnvironmentalImpactDeclaration.The110MWSolgestCSPplantistobebuiltalongwith40MWofPV.

?ASwissteamachieveda

recordsolar-to-hydrogendevice-levelefficiencyofgreaterthan20%,

usingaCSPparabolicdish.Thedeviceisalreadyoperational,andastart-upiscommercializingthesystemto

scaleupthetechnology.

NREL|5

Off-gridPVProductShipped(millionsofunits)

GlobalOff-GridSolarMarket

10

9

8

7

6

5

4

3

2

1

0

Total

ROW

India

RestofAfrica

RestofEastAfrica

Kenya

MW

off-gridPVProductsSales(MW)

100

90

80

70

60

50

40

30

20

10

0

201120122013201420152016201720182019202020212022

?Despitesignificantgrowthofoff-gridPVinthefirstpartofthelastdecade,salesstartedto

stagnatein2016andthencontractedfromtheCOVID-19pandemic.

?In2022,thesetrendsreversed,withtheGlobal

Off-GridLightingAssociationtrackingarecord9.5millionoff-gridsolarproductssoldin2022.

Collectively,theyhadacapacityof94MW.

–Theassociationattributedthegainstobetterprogrammaticsupport,andimprovedfinancialmechanisms.

–Mostoftheunitssoldwereassociatedwithlighting(particularlybyvolumeportablelightingproducts),howeverpreliminarydatashowsalmost2millioninproductsassociatedwithappliances,includingfans,TVs,radios,waterpumps,andrefrigerators.

Source:GlobalOff-GridLightingAssociation,“GlobalOff-GridSolarMarketReportSemi-AnnualSalesandImpactData.”

NREL|6

NREL|7

Agenda

1GlobalSolarDeployment

2U.S.PolicyUpdates

3U.S.PVDeployment

4PVPricing

5GlobalManufacturing

6U.S.PVImports

7VirtualPowerPlants

?InQ22023,theIRSreleasedinitialguidanceonseveralkeyprovisionswithintheInflationReductionAct,including:

bonuscredits,directpayment,andtransferabilityoftheITCandPTC.

?OnJune28th,theU.S.EnvironmentalProtectionAgency

(EPA)releasedaNoticeofFundingOpportunityforthe$7billionSolarforAllgrantprogramthroughtheGreenhouseGasReductionFund(GGRF).

?InQ22023,theCaliforniaIndependentSystemOperatorapproveda$7.3billionplantobuildtransmission

connecting17+GWofsolarcapacity.

Mapshowslocations(58)usingSolarAPP+asofJuly14,2023.

SymbolsizesscaletocapacityofPVapprovedusingSolarAPP+

(23,600permits,142MWtotal).

States:Q22023Updates

Coloradocreatedamillion-dollargrant

programtohelplocalgovernmentsstartusingpermittingandinspectionsoftwaresuchas

SolarAPP+

.

Afterpassinga100%cleanpowerlawinQ1,MinnesotapassedlawsinQ2includingfundingPVonpublicbuildings,gridupgrades,energystorage,utilityPVincentives,electrification,

greenbanks,andPVrecyclingstudieswhileexpandingcommunitysolar,requiringutilitiestoprocuredistributedPV,andprotectingresidentialPVcustomersfromHOArestrictions.

TheCaliforniaIndependent

SystemOperatorapproveda

$7.3billionplantobuild

transmissionconnecting17+

GWofsolarcapacityand9+GW

ofwindandgeothermal

capacityby2030,aimingto

coordinatetransmissionand

generatorlocationsandreduce

interconnectiondelays.

Texaspassedalawrequiringrenewableenergyprojectstopayhigher

transmissionfeesandpayfor“firming”requirementsbutavoidingstrongrestrictionsonrenewableenergypermittingfromtheoriginalbill.

Sources:CanaryMedia(

5/3/23

,

5/11/23

,

5/16/23

,

5/22/23

,

5/24/23

),PVMagazine(

5/2/23

,

5/17/23

,

5/25/23

,

5/30/23

),PVTech(

5/24/23

),Reuters(

6/23/23

),SolarAPP+(

accessed7/20/23

),SolarPowerWorld(

4/18/23

,

5/23/23

)

Vermontenactedaclean

heatstandardtoreduce

fossilheating.

NewYorkpassedthefirststatewidebanonnaturalgasinnewbuildingsandauthorizedpubliclyfunded,

constructed,andownedrenewableenergyprojects.

Marylandexpandedandmade

permanentitscommunitysolar

program,becomingthe23rdstatetohaveacommunitysolar

frameworkwithoutaccesslimits.

NREL|8

SolarTaxCreditSummaryandStatus

TaxCreditValueEndYearTreasuryInitialGuidance

AdvancedManufacturingProductionTaxCredit(MPTC,45X)

Variesby

component

2032

[noneyet]

AdvancedEnergyProjectCredit(48C)?

30%

($10Btotal)

N/A

AdditionalGuidancefrom

IRS/MESC

ProductionTaxCredit

(PTC,45(d)/45Y)?

2.75￠/kWh?+bonus

2035*

LaborRules

EnergyCommunitiesBonus

Low-IncomeCommunityBonus

DomesticContentBonus

InvestmentTaxCredit(ITC,48/48E)?30%+bonus

2035*

ResidentialCleanEnergyCredit(25D)

30%

2033

FAQsonenergyefficienthome

improvementsand25D

?Valuescouldbereducedbyafactorof5forfacilities≥1MWacthatfailtomeetlaborrules

?Adjustedforinflation

*couldbeextended

DirectPay

and

Transferability

,including

FAQs

AdvancedEnergyProjectCredit(48C)NewestGuidance

OnMay31st,TreasuryandtheIRSreleased

furtherguidance

onthe

48Ctaxcreditallocationprocess

.AdministeredbytheU.S.DepartmentofEnergy’s(DOE’s)OfficeofManufacturingandEnergySupplyChains(MESC),48Cawardsanupfront30%taxcredit(iflaborrequirementsaremet)forcapitalinvestmentsmadetopurchaseandcommissionorupgradeanindustrial,manufacturing,orrecyclingfacility.MESCalsoheldaninformational

webinaronJune27,2023

AsdetailedintheinitialguidanceissuedinFebruary,selectionwillfollowthestandardDOEtwo-stepfundingopportunityannouncement(FOA)processofconceptpaperswhichreceiveencourage/discourageletters,followedbyreviewofafullapplication.Theprogramwill

beginacceptingconceptpapersonJune30,2023via

eXCHANGE

,forafirstroundof$4billionincredits,withapproximately$1.6billion

reservedforprojectsineligiblecommunities(see

map

).ConceptpaperswillbeduenolaterthanJuly31,2023.Encourage/discourage

lettersareanticipatedinthefallof2023.Thedeadlineforfullapplicationshasnotyetbeenset.DecisionswillbemadebyMarch31,2024.

Projectswillbeevaluatedfirstforcomplianceandeligibilityandthenevaluatedbasedonthefollowing4technicalcriteria:

1.Commercialviability(includingshortestprojecttimeline,lowestlevelizedcostofenergy(LCOE),andriskmitigationstrategies)

2.Netimpactongreenhousegasreduction(includingdirect,indirect,andlifecycleemissions)

3.StrengtheningU.S.supplychains(Round1priorityareasare:polysilicon,wafer,ingot/waferproductiontools,andsolarglass)

4.Workforceandcommunityengagement(aplanforthismustbeincludedinbothapplicationstages)

DOEwillalsoranktheapplicationsbasedonprogrampolicyfactorssuchasportfoliodiversity(size,technology,geography,etc.).

Projectsmaynotbeplacedinservicepriortoallocation.Onceallocated,projectsmustbecertifiedwithin2yearsandplaceinservicewithin2yearsofcertification.TaxpayersmustinformDOEandtheIRSofanysignificantchangeofplans.

EnergyCommunitiesBonusNewestGuidance

EnergyCommunitiesBonusCreditProgram:a10%increasetotheInvestmentorProductionTaxCredits(ITC/PTC)tobrownfields,fossil

fuelcommunitieswithhighunemployment,andcoalclosurecommunities.Treasuryreleased

guidance

onApril4th,includingreleasinga

map

hostedbythe

InteragencyWorkingGrouponCoal&PowerPlantCommunities&EconomicRevitalization

,DOEandIRS.They

updated

bothmapandguidanceonJune15th,aswellasaddingan

FAQs

page.From2024on,themapshouldbeupdatedeachMay.

*Grandfatherclause:ifaprojectstartsconstructiononasitelocatedinafossilfuelcommunity,itwillstillreceivethecreditifthestatusofthecommunitychangesinalateryear.

-CoalClosureCommunity

-AdjacenttoaCoalClosureCommunity

-MetropolitanorNon-MetropolitanStatisticalAreasthatmeetthe

FossilFuelEmploymentThresholdandtheunemploymentrate

requirement

Notdepicted:

-Brownfields

(≠EPABrownfieldProgramSites)

-Fossilfuelcommunitiesas

determinedbasedontaxrevenue.

Grandfatherclause*onlyappliestofacilitiesconstructedin/after2023.

DirectPaymentofTaxCreditsGuidance

TreasuryandtheIRShaveissued

FAQs

,

proposed

,and

temporaryregulations

ondirectpay(alsocalled“electivepay”)oftheITC,PTC,48C,andManufacturingProductionTaxCredit(MPTC).CommentswereduetotheIRSbyAugust14th.

④

①

②

Taxburden<fullcreditstillreceivesfullvalue

③

pre-filingregistration

registration#

⑤

taxforms

+registration#+$taxes

$$fullvalueoftaxcredit

TheITC,PTC,and48Careeligiblefordirectpayonlyby:

?Tax-exemptorganizations?

?StatesandTerritories(orpoliticalsubdivisionsthereof,?includingcities,counties,andinstrumentalitieslike?schooldistricts)?

⑥

IR

S

Step①-PursueaqualifyingprojectStep②-Determinethetaxyear

Step③-Completepre-filing

registrationwiththeIRSandget#Step④-Meetallrequirementsofqualifyingproject

Step⑤-Fileannualtaxesusing#Step⑥-Getrefund

Indiantribalgovernments

AlaskaNativeCorporations

TheTennesseeValleyAuthority

Ruralelectriccooperatives.

Notallstepsneedbe

sequential,but③mustprecede⑤and⑥.

TheMPTCiseligiblefordirectpayforfiveconsecutiveyears(whichmaybepostponed).

DirectPaymentofTaxCreditsGuidance

TreasuryandtheIRShaveissued

FAQs

,

proposed

,and

temporaryregulations

ondirectpayoftheITC,PTC,48C,andMPTC.CommentswereduetotheIRSbyAugust14th.TheFAQsfordirectpayalsoclarified:

?Whichentitieswereeligiblefordirectpay(includinginstrumentalitiesandagenciesofStates,cities,andcountieslikeschooldistricts,economicdevelopmentagencies,orpublichospitals)

?WhatownershipstructuresareallowedfordirectpayundertheITC,PTC,or48C(e.g.,atenancy-in-common

arrangementisallowed,butapartnership,ifevenifallpartnersareeligible,isnot)andtheMPTC(partnershipsandScorporationsareallowed)

?Howtax-exemptincomeaffectsthedirectpaymath(itcanbeincludedinthebasis,butthetotaldirectpayamountcannotexceedthe[projectcost–tax-exemptfundsthatweregrantedspecificallyforthisproject])

?Thattransfercreditsareineligiblefordirectpay.

Asoutlinedonthepreviousslide,theFAQsalsodescribedtheprocessofelectingdirectpay.Moreinformationabout

(electronic)pre-filingregistrationwillbeavailablewhentheprocessislaunchedlaterin2023,includingadviceforfilerswithoutinternetaccess.Registrationisrequiredeveryyear(evenforelectionsthatlastmultipleyears,suchasthePTC)andforeachapplicablepropertybutdoesnotconfirmeligibility.

Directpaycanonlybemadeonoriginal,timelyfiledreturns(includingextensions),andpaymentsoccurafterthereturnisprocessed.ElectivepaymentisirrevocablefortheITC,PTC,and48C.

Moreguidanceisstilltocome(includingdomesticcontentrequirementsofdirectpaystartingin2024).

taxforms,registration#,￠taxes+transferelectionstatement

⑦

buyer

TransferabilityofTaxCreditsGuidance

TreasuryandtheIRShaveissued

FAQs

,

proposed

,and

temporaryregulations

onthetransferabilityoftheMPTC,48C,ITC

andPTC.CommentswereduetotheIRSbyAugust14th.

②

pre-filingregistration

①

③

registration#

⑦

seller

IR

S

(noteligiblefordirectpay)

④⑤

Taxburdentoolow

toclaimfullcredit

⑥

Step①-PursueaqualifyingprojectStep②-Completepre-filing

registrationwiththeIRSandget#

Step③-Meetallrequirementsofqualifyingprojecttoearncredit

Step④-Arrangetotransferthe

credittoanunrelatedbuyerforcashStep⑤-Providethebuyerthe#Step⑥-Completethetransfer

electionstatementwiththebuyerStep⑦-Bothbuyerandsellerfileannualtaxesincludingthetransferelectionstatementandregistrationnumber

(e.g.,hasahigher

taxburden)

Notallstepsneedbesequential,but②mustprecede⑤-⑦.

TransferabilityofTaxCreditsGuidance

TreasuryandtheIRShaveissued

FAQs

,

proposed

,and

temporaryregulations

onthetransferabilityoftheMPTC,48C,ITCandPTC.CommentswereduetotheIRSbyAugust14th.

TheFAQsfortransferabilityalsoclarifiedthat:

?Ataxpayercannottransferjustthebonuscreditamountofacredit

?Creditfromasinglepropertycanbesoldtomultiple(unrelated)buyersinthesametaxyear

?Buyerscanincorporatetransferredcreditsintheirestimatedtaxes

?Thebuyerbearsresponsibilityforrecapture

?Depreciationbenefitsdonottransfer

?Transfercreditsareineligiblefordirectpay.

Asoutlinedonthepreviousslide,theFAQsalsodescribedthetransferprocess.Moreinformationabout(electronic)pre-filingregistrationwillbeavailablewhentheprocessislaunchedlaterin2023.Registrationisrequiredeveryyearandforeachapplicablepropertybutdoesnotconfirmeligibility.

Ifthecreditsfromasinglepropertyhavemultiplebuyers,thesameregistration#isused.

Sellersattachthetransferelectionstatementtothetaxreturnintheyearinwhichtheybecomeentitledtothecredit.Buyersdosointheyearinwhichtheytakethecreditintoaccount.

Racking

DomesticContentBonusGuidance

TreasuryandtheIRShaveissued

initialguidance

onthe10%domesticcontentbonuscreditavailablefortheITCorPTCwhichwillapplyuntil90daysafterthedateofpublicationofforthcomingproposedregulations.

Theguidanceclarifiedrelevantdefinitionsandprovidedanon-exhaustivelistofutility-scalesolarPVproducts:

ApplicableProject

ManufacturedProducts

Asetpercentageofthetotaldirectcosts?ofallmanufacturedproductsmustbeU.S.-made.

Module

Components*

Cells,Frame,Glass,

Encapsulant,JunctionBox,Backsheet,EdgeSeals,Pottants,Bus

Ribbons,Adhesives,BypassDiodes

Tracker

SteelandIronProducts

AllstructuralsteelorironproductsmustbeU.S.-made

Pile/groundscrewRebar

*sourcingofsubcomponents(e.g.,wafers)isnotconstrained

=

DomesticCost

Percentage

U.S.ManufacturedProductsCosts+EligibleU.S.ComponentsCosts

TotalManufacturedProductsCosts

=

2023-2024

2025

2026

2027+

40%

45%

50%

55%

Taxpayersmustattachadomesticcontentcertificationstatementattestingtheyhavemetbothrequirements.

tDirectcostsincludeonlydirectlaborandmaterial.Thedirectlaborofproductsmanufacturedin

theU.S.isonlyconsidereddomesticifallofthecomponentsoftheproductareofU.S.origin.

WasitmanufacturedintheU.S.?

No

Yes

Costsofmanufacturedproduct

includedinthenumeratorand

denominator

20x

DomesticContentBonusGuidance

TherearetwoquestionswhichdeterminehowthecostsofamanufacturedproductareincludedinthecalculationoftheDomesticCostPercentage.

Costsincluded

onlyinthe

denominator

Were100%ofitscomponentsmanufacturedintheU.S.?

Yes

No

Costsofmanufacturedproduct

includedinthedenominator

CostsofU.S.-madecomponents

includedinthenumerator

=

DomesticCostPercentage

U.S.ManufacturedProductsCosts+EligibleU.S.ComponentsCosts

TotalManufacturedProductsCosts

Example:

ModuleA

TrackerB

InverterC

Manufacturinglocation

Total

$10

Component1

$3

Component2

$4.50

Total

$200

Component1

$50

Component2

$135

Total

$100

Component1

$20

Component2

$25

Alldirectcosts,butonlydirectcostsareincludedinthecomputation(notprices!).

?Directcostsincludeonlydirectlaborandmaterial.

Costsofmanufacturedproduct

includedinthenumeratorand

denominator

ModuleA

20x

Yes

Yes

DomesticContentBonusGuidance

TherearetwoquestionswhichdeterminehowthecostsofamanufacturedproductareincludedinthecalculationoftheDomesticCostPercentage.

WasitmanufacturedintheU.S.?

Were100%ofitscomponentsmanufacturedintheU.S.?

$10x20

DomesticCostPercentage

$10x20

=

Manufacturing

location

Example:

Total

$10

Component1

$3

Component2

$4.50

Total

$200

Component1

$50

Component2

$135

Total

$100

Component1

$20

Component2

$25

TrackerB

InverterC

TrackerB

Yes

DomesticContentBonusGuidance

TherearetwoquestionswhichdeterminehowthecostsofamanufacturedproductareincludedinthecalculationoftheDomesticCostPercentage.

WasitmanufacturedintheU.S.?

Were100%ofitscomponentsmanufacturedintheU.S.?

DomesticCostPercentage

=

No

Costsofmanufacturedproduct

includedinthedenominator

CostsofU.S.-madecomponents

includedinthenumerator

$10x20

+$50

$10x20+$200

Component2

Component1

Example:

Manufacturing

$4.50

20x

location

$10

Total

ModuleA

$3

Total

$200

Component1

$50

Component2

$135

Total

$100

Component1

$20

Component2

$25

InverterC

WasitmanufacturedintheU.S.?

No

InverterC

DomesticContentBonusGuidance

TherearetwoquestionswhichdeterminehowthecostsofamanufacturedproductareincludedinthecalculationoftheDomesticCostPercentage.

Costsincluded

onlyinthe

denominator

=

DomesticCostPercentage

$10x20

+$50

$10x20+$200+$100

Component1

Component2

Component1

Component2

Example:

Manufacturing

TrackerB

$4.50

$200

$135

20x

location

$50

$10

Total

Total

ModuleA

$3

Total

$100

Component1

$20

Component2

$25

U.S.-madecomponentsdonotchangethecomputationsforforeign-manufacturedproducts

Costsincluded

onlyinthe

denominator

No

Costsofmanufacturedproduct

includedinthenumeratorand

denominator

20x

Yes

DomesticContentBonusGuidance

Therearetwoquestionswhichdeterminehowthecostsofamanufacturedproductareincludedinthecalculationofthe

DomesticCostPercentage.

WasitmanufacturedintheU.S.?

Were100%ofitscomponentsmanufacturedintheU.S.?

Yes

No

Costsofmanufacturedproduct

includedinthedenominator

CostsofU.S.-madecomponents

includedinthenumerator

DomesticCostPercentage

=

$10x20

+$50

$10x20+$200+$100

=50%

Example:

ModuleA

TrackerB

InverterC

Manufacturinglocation

Total

$10

Component1

$3

Component2

$4.50

Total

$200

Component1

$50

Component2

$135

Total

$100

Component1

$20

Component2

$25

2

4

3

1

Low-IncomeCommunitiesBonusNewestGuidance

Low-IncomeCommunitiesBonusCreditProgram(48(e)),awardsanupfront10%or20%bonustaxcreditforamaximumof1.8GWdcperyearofsolarprojects<5MWacinsize.

TreasurypostedinitialguidanceinFebruary

and

finalregulationsfor2023awardsin

10%credit

low-incomecommunityasdefinedbytheNewMarketsTaxCredit

IndianLand

20%credit

qualifiedlow-

qualifiedlow-incomeeconomicbenefitproject

incomeresidentialbuildingproject

August

,largelyinlinewith

NoticeofProposedRulemakingreleasedinJune

.

490MW700MW200MW

TreasuryandtheIRSreservetherightto

reallocateexcess

capacitytoany

oversubscribed

categoriesand/or

changeinitialcategoryreservationcapacities

TreasuryandtheIRSclarified:howenergystoragetechnologycanbeincluded*,howfinancialbenefitsforCategory3&4projectswouldbecalculatedanddistributed(includingrequiringCategory4applicantsprovideatleasta20%billcreditdiscountrateforalllow-incomehouseholds),andhowIRSintendstopreventcircumventionoftherules(e.g.,artificiallydividingupprojects;changingprojectsize,location,ownership,orbenefitsdistributionsafterallocation;placingaprojectinservicepriortoallocation).

Duetoanticipatedapplications,andtobetterservehouseholdsinlow-incomeareas,490MWofCategory1isbeingallocatedtoresidentialbehind-the-meterfacilitiesfor2023allocations,withtheremainderreservedforfrontofthemeterfacilitiesandnon-residentialbehindthemeterfacilities.

*Storageisnotincludedinanyprojectcapacitylimits;however,itmustbeownedbythesameparty,beonthesameorcontiguousland,andreceivethesamepermittingandinterconnectionasthesolarasset.Additionally,theownermustbeabletoprovidethatitischargednolessthan50percentbythesolarasset(asafeharborappliesifthepowerratingofthestorageislessthan2timestheDCcapacityofthesolarfacility).

August

,largelyinlinewith

NoticeofProposedRulemakingreleasedinJune

.

700MW200MW

4