Erthos Plants Qualify for US Domestic Content Tax Credit

Company Reaches Supply Chain Agreement for US-Manufactured PV Modules

/EIN News/ -- Tempe, AZ, USA, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Erthos, a large-scale renewable energy technology company and inventor of Earth Mount Solar, has reached an agreement with an undisclosed manufacturing partner that secures US-manufactured PV modules for Earth Mount Solar projects and enables US domestic content tax credits for its plants beginning in January 2025. 

Earth Mount Solar marks a milestone advancement in the evolution of large-scale solar plant design. The PV modules are placed flat on the ground, eliminating the need for driven piles and steel tracking structures. This reduces installation time and materials and simplifies operations and maintenance, ultimately boosting returns for solar developers. 

We are thrilled to announce this new agreement, which provides Erthos with a significant supply chain advantage in an increasingly competitive market,” said Colin Caufield, Vice President of Sales at Erthos. “Demand for US-manufactured PV modules far outpaces supply, and securing this access, with first-right-of-refusal, positions Erthos to meet the IRA’s domestic content requirements over the next two years. This is truly a monumental achievement.”

For solar plants starting construction in 2025, at least 45% of the plant’s applicable manufactured products and components must be manufactured in the US to qualify for the full domestic content tax credit. In 2026, this threshold increases to 50%. Under the elective safe harbor method outlined in IRS Notice 2024-41, Earth Mount Solar plants can achieve a domestic content percentage of 54.4% – well above the domestic content thresholds for the next two years.

This agreement ensures that solar developers looking to take advantage of the IRA’s domestic content tax credit can move forward without delay.

“While we’ve secured our module manufacturing partner’s entire production capacity going forward, the clock is ticking for those looking to participate,” Caufield added. “Solar developers that don’t act now may miss out on this unprecedented opportunity.” 

Attachment

• Earth Mount Solar Project

Jason Williams
                    Erthos
                    217-766-5665
                    jason.williams@erthos.com