Japanese cell and module manufacturer Toyo Solar has announced plans to establish a 2 GW module plant in the US, with commissioning expected next year.
Toyo Solar Details Plans for New TOPCon Module Facility
The company, a subsidiary of Japanese manufacturer VSUN Solar, announced in its half-year results that the new facility will produce tunnel oxide passivated contact (TOPCon) modules. The new plant is set to strengthen its focus on the American market.
During the first half of 2024, Toyo Solar already had a manufacturing capacity of 3 GW and supplied 985 MW of cells, with a significant portion utilized in U.S. projects.
Toyo Solar will invest $100 million in the new factory, anticipating that supportive U.S. legislation will enable it to recover most of the cost within 12 months of the project’s launch. Once mass production begins, the company also plans to incorporate the VSUN brand, credentials, and U.S. sales channels into its own operations.
“Toyo owns one of the largest, non-Chinese N-type cell manufacturing bases in the world. For the first six months of 2024, 985 MW Toyo cells were utilized mainly to power US-based projects.” said Toyo Solar.
Toyo Solar to Gain $84 Million in IRA Tax Credits with New Facility
Under the Inflation Reduction Act (IRA), which provides tax credits for clean energy manufacturing, Toyo Solar expects to receive $12 per square meter of wafers produced, $0.04 per watt for cells, and $0.07 per watt for modules. The company expects to manufacture 1.4 GW of modules in the first year and plans to expand to 2 GW annually, which would generate approximately $84 million in tax credits.
Looking ahead, Toyo Solar also plans to start U.S. cell production in early 2026 and has announced plans for a wafer-slicing facility, though a timeline has not yet been set for this project.
This announcement comes amid substantial investments in the U.S. solar manufacturing sector. Earlier this year, the U.S. Department of Energy (DOE) allocated $71 million for silicon and thin-film manufacturing projects, while Swiss manufacturer Meyer Burger made news by shutting down a plant in Germany to open a new facility in Arizona.
Toyo Solar’s TOPCon Cells: Top Efficiency in Solar Technology
Toyo Solar specializes in Tunnel Oxide Passivated Contact (TOPCon) solar cell technology, the fastest-growing solar technology globally.
These cells perform exceptionally well in low-light conditions, maintaining a relative conversion efficiency of ≥ 97% at 200 W per square meter. They also achieve a high front efficiency of 25.3% or more, with a bifacial efficiency of around 85% compared to the front side.