Siemens CEO Roland Busch at their office in Singapore June 15, 2023. (REUTERS/Edgar Su)
- German multinational conglomerate Siemens announced plans to start production of solar string inverters in the USA starting in 2024, through a contract manufacturer in Kenosha, Wisconsin.
- This move aligns with the landmark climate change laws enacted under President Joe Biden, geared toward bolstering American-made supplies of solar energy components.
- Siemens’ decision to provide these crucial devices showcases a strategic effort to capitalize on governmental incentives, positioning itself strongly within the renewable energy sector and standing in competition with global players like China.
- The initiative is predicted to create jobs and significantly contribute to the growing domestic solar sector.
German multinational conglomerate Siemens announced on Tuesday that it’s going to initiate production of solar energy equipment within the U.S. starting in 2024.
This manufacturing shall be carried out through a contract manufacturer in Kenosha, Wisconsin.
A Strategic Move
The choice aligns with Siemens’ global vision and demonstrates a strategic move to capitalize on the landmark climate change laws enacted under President Joe Biden.
The incentives on this year-old law aim to bolster American-made supplies of solar energy components, allowing domestic producers to face in competition with global leaders like China.
The Product Line
Siemens’ U.S. production shall be focused on solar string inverters. These devices are pivotal in converting the energy generated by solar panels into usable current. The production shall be undertaken at a facility operated by Sanmina, a world electronics manufacturing services provider.
Brian Dula, vice chairman of electrification and automation at Siemens Smart Infrastructure USA, praised the move, stating, “Working with Sanmina to determine this latest production line, Siemens is well positioned to deal with supply challenges our country is facing as we work to localize production for green and renewable infrastructure.”
Job Creation and Scaling Up
Initially, Siemens’ enterprise will create as much as a dozen jobs on the Kenosha factory. Nevertheless, production is predicted to scale as much as a capability of 800 megawatts of inverters per yr. This growth reflects the robust interest and investment within the renewable energy sector in the USA.
Incentives and Impact
The Inflation Reduction Act (IRA) has played a pivotal role on this burgeoning industry. It has unleashed $100 billion in domestic solar sector investment in only the past yr, with $20 billion earmarked for solar and storage manufacturing.
Greater than 50 solar manufacturing facilities have been announced or expanded for the reason that IRA’s passage, culminating in about 7 gigawatts of inverter capability. The IRA’s tax credits, offering bonus tax credits value 10% of the project’s cost for using American-made equipment, provide tangible incentives for each producers and buyers.
Siemens’ entry into the U.S. solar manufacturing landscape reflects a broader shift towards renewable energy and domestic production. It also illustrates the tangible impact of targeted government incentives on the worldwide business landscape.
This move is not going to only fortify the U.S. position within the renewable energy market but additionally enhance the country’s standing in global clean energy initiatives.
Siemens’ decision underscores the crucial role of public policy in shaping the long run of energy and in advancing the worldwide objective of sustainable development.
In the long run, the success of this initiative may function a model for other global industrial giants, steering them toward investments in renewable energies.
It’s a strategic alignment of corporate objectives with national interests and global sustainability goals, reflecting the contemporary ethos of responsible corporate citizenship.