Japanese cell and module manufacturer Toyo Solar has revealed plans to establish a 2GW module plant in the US, with plans to commission it next year.
VSUN Solar Subsidiary Launches New Facility for TOPCon Modules
As announced in its half-year results, the company— a subsidiary of Japanese manufacturer VSUN Solar — plans to produce tunnel oxide passivated contact (TOPCon) modules at its new facility. In the first half of 2024, Toyo Solar had a manufacturing capacity of 3 GW, supplied 985MW of cells primarily for U.S. projects and aims to strengthen this partnership with its new manufacturing plant.
Toyo Solar plans to invest $100 million in the new facility, anticipating that supportive U.S. legislation will enable it to recover most of the investment within 12 months of the project's launch. Toyo Solar announced that it plans to incorporate the VSUN brand, its credentials and U.S. sales channels into its brand once mass production starts at its U.S. facility.
“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 anticipates receiving $12 per square meter of wafers produced, $0.04 per watt of cells and $0.07 per watt of modules. The company expects to manufacture 1.4GW of modules in the first year with plans to expand to 2GW annually, generating approximately $84 million in tax credits.
Looking ahead, Toyo Solar plans to start U.S. cell production in early 2026 and has announced intentions to build a wafer-slicing facility — though no timeline has 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 which is the fastest-growing solar technology globally. These cells perform exceptionally well in low-light conditions, with a relative conversion efficiency of ≥ 97% at 200 W per square meter. They also achieve a high front efficiency of 25.3% or more and a bifacial efficiency of around 85% compared to the front side.