Yahoo Finance Schneider Electric Collaborates With Crux To Facilitate Purchase of 45X Tax Credits From Silfab Solar
The tax credits purchased by Schneider Electric resulted in additional capital to Silfab Solar to further expand US manufacturing of solar PV modules.
BOSTON, MA / ACCESSWIRE / May 16, 2024 / Today, Schneider Electric, the leader in the digital transformation of energy management and automation, announced a collaboration with Crux, a sustainable finance technology company, to procure Section 45X Advanced Manufacturing Production Tax Credits from Silfab Solar, a North American leader in the design, development, and manufacture of premium solar PV modules.
Schneider Electric's purchase of these tax credits generated supplemental investment funds for Silfab to accelerate its expansion plans for American manufacturing of solar energy for commercial and residential utilization.
"We are excited to announce a tax credit transfer agreement with Crux and Silfab Solar to accelerate the growth and expansion of American domestic manufacturing of solar energy," said Aamir Paul, President of North America Operations for Schneider Electric. "By leveraging the Inflation Reduction Act's new tax credit transfer provisions, we can foster the development of renewable energy infrastructure and contribute to a more sustainable planet."
Under the Inflation Reduction Act (IRA), the new transferable tax credit market allows clean energy developers and manufacturers to sell their tax credits to third parties for cash - creating a powerful market mechanism to channel private sector investments into energy infrastructure, innovative technologies, and advanced manufacturing.
The purchase of Silfab's tax credits represents one of the transactions that the Schneider Sustainability Business has facilitated on behalf of its parent company. The Sustainability Business is similarly advising many other corporations on tax credit purchase opportunities, representing dozens of investors and billions in annual corporate tax liability.
"We are delighted to announce this transaction with Silfab and deeply appreciate the collaboration with Crux. Crux's platform adds transparency and visibility into market opportunities, adding to our robust process for sourcing for tax credits in the market for Schneider and our corporate clients. Our role is to help our clients know where to access the best possible tax credits, including with partners like Silfab and Crux, all while mitigating buyer risk; this transaction is a testament to that successful process," said Hans Royal, Senior Director, Renewable Energy & Cleantech, Schneider Electric's Sustainability Business.
Crux played a significant role in facilitating and streamlining the successful transaction of these tax credits, including by initially connecting Silfab Solar and Schneider Electric through its transferable tax credit ecosystem.
Launched in January 2023, Crux is changing the way clean energy and decarbonization projects are financed in the United States, starting with transactions of the new transferable clean energy tax credits created by the IRA.
"Domestic manufacturing of key energy components is booming and Silfab Solar is a leader in the space," said Alfred Johnson, CEO and co-founder of Crux. "We were thrilled to help Silfab successfully navigate their first 45X tax credits sale to Schneider Electric, a global leader in the energy transition. This deal exemplifies how the transferability of tax credits is win-win: providing simple, efficient access to capital to support Silfab's expansion while allowing Schneider to make additional investments in the growth of the clean energy industry."
"Silfab was pleased to partner with Schneider to unlock the value of our advanced manufacturing tax credits," said Paolo Maccario, CEO and President of Silfab Solar, Inc. "As a result, we were able to monetize our 45X tax credits, providing us access to additional capital that is beneficial in expanding our US solar manufacturing capacity. Silfab is deeply committed to US energy independence and buyers like Schneider Electric allow us to further accelerate our growth. Crux was also an important partner to this transaction, helping connect us to Schneider via their intuitive and accessible platform."
Crux's first inaugural Transferable Tax Credit Market Intelligence Report, released in January 2024, estimated the new transferable tax equity market would reach $7-9 billion in size within its first year of activity. Crux has already emerged as a pivotal technology player in the successful transactions of the market.
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About Schneider Electric
Schneider's purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.
Our mission is to be your digital partner for Sustainability and Efficiency.
We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.
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About Crux
Crux is a sustainable finance technology company changing the way clean energy and decarbonization projects are financed in the U.S. The company's first offering is the ecosystem for buyers, sellers, and intermediaries to transact and manage transferable tax credits. Crux is co-founded by Alfred Johnson and Allen Kramer, who previously founded and exited a successful marketplace software company, Mobilize. Rob Parker serves as Chief Commercial Officer and brings 20+ years of experience in the power industry, most recently serving as CFO at REV Renewables. Since its launch in 2023, Crux has raised over $27 million in funding from venture capital and strategic investors and built a world-class team that merges expertise from energy, finance, government, and technology to power the clean energy transition. For more information, visit https://www.cruxclimate.com/.
About Silfab Solar
Silfab Solar is the North American leader in the design, development and manufacture of high-efficiency, premium quality PV modules. Silfab leverages more than 40 years of solar experience and best-in-class technologies to produce the highest- rated solar modules. Silfab operates state-of-the-art facilities in the state of Washington and Toronto, Canada and will soon be manufacturing solar cells and PV modules in Fort Mill, South Carolina. Each facility features multiple automated production lines, an ISO 9001:2015-accredited Quality Management System, and just-in-time manufacturing to deliver Buy American approved PV modules specifically designed for and dedicated to the North American market. www.silfabsolar.com
Media Contact
press@cruxclimate.com
Media Contact
Geoff Atkins
g.atkins@silfabsolar.com
Tel: +1-905-255-2501 Ext.737
Media Contact
Luis Davila
luis.davila@se.com
206-619-9397
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SOURCE: Schneider Electric
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