T1 Energy Inc. closed a $160 million transaction to sell its Section 45X production tax credits, valuing the credits at $0.91 per dollar of credit and covering credits accrued and verified through December 2025. The deal delivers an immediate cash infusion that the company will use to fund the construction of its G2 Austin solar‑cell facility and the ramp‑up of its G1 Dallas module plant.
This sale marks T1’s first monetization of Section 45X credits, a key incentive under the Inflation Reduction Act that rewards domestic manufacturing of solar components. The $0.91 price represents a modest discount from face value, yielding roughly $145.6 million in cash. The proceeds will support the company’s capital‑intensive expansion and help offset the losses and declining earnings reported in recent quarters, reinforcing its strategy to become a vertically integrated U.S. solar and battery provider.
CFO Evan Calio said the transaction validates T1’s ability to convert future tax‑credit benefits into working capital, a critical step for meeting IRA content requirements and sustaining long‑term growth. He noted that the credits are essential for the company’s domestic manufacturing strategy and that the sale provides the liquidity needed to accelerate its expansion plans.
In addition to the credit sale, T1 announced that it has completed transactions to ensure eligibility for 2026 Section 45X credits under the Foreign Entity of Concern rules, demonstrating proactive regulatory compliance and positioning the company for future credit monetization.
The transaction underscores T1’s focus on leveraging IRA incentives to build a U.S. solar supply chain, positioning it to capture growing domestic demand for solar modules and cells. The sale also follows the company’s December 2024 acquisition of Trina Solar’s U.S. manufacturing assets, further expanding its domestic footprint and reinforcing its competitive position in the U.S. solar market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.