SB Energy's $1.9B Solar Projects: Biden Tax Credits Boost US Manufacturing
- SB Energy, backed by SoftBank, has secured financing for four solar projects in Texas. They are the first to qualify for federal tax credits, and Google will buy 75% of the energy produced. JPMorgan Chase, Bank of America, Morgan Stanley, and Truist Bank are helping finance the projects, which will create 1.3 gigawatts of power.
SoftBank-backed SB Energy has secured financing for four solar projects in Texas and has become the first to qualify for key federal tax credits tied to buying solar components made in the US. The Inflation Reduction Act was passed last year and designed to bolster domestic manufacturing and green energy, incentivizing those who meet a “domestic content” requirement with a 10% tax credit. Three of SB Energy’s projects qualify for the domestic content credit, with all four qualifying for additional credits for projects based in areas of high unemployment or where coal mines or coal-fired plants have shuttered. The projects will produce 1.3 gigawatts of power, with Alphabet Inc.’s Google set to buy three quarters of the energy to power their data centers in the state. The firm was able to secure financing for the projects with support from JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Truist Bank.
Has SB Energy Qualified for Tax Credits?
- Yes, SB Energy has qualified for tax credits.
- The Inflation Reduction Act, passed in 2020, incentivizes those who meet a “domestic content” requirement with a 10% tax credit.
- Three of SB Energy’s projects qualify for this domestic content credit, with all four qualifying for additional credits for projects based in areas of high unemployment or where coal mines or coal-fired plants have shuttered.
- The projects will produce 1.3 gigawatts of power, with Alphabet Inc.’s Google set to purchase the energy to power their data centers in the state.
- SB Energy was able to secure financing for the projects with support from JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Truist Bank.