IGNITE Mar 25 - Domestic Solar Modules: Not All Are Created Equal
- Imperial Star Solar
- Mar 31
- 4 min read
In recent conversations with our customers, we've identified some common misconceptions about domestic content solar modules and their eligibility for tax incentives. Many buyers assume that all modules labeled as "domestic content" automatically qualify for the 10% tax bonus under the Inflation Reduction Act (IRA). However, not all domestic content modules are created equal, and understanding the details is crucial for making informed decisions.
Solar modules labeled as "domestic content" can vary significantly in their composition and eligibility for tax incentives. The percentage of U.S.-made components differs among modules, impacting their contribution to domestic content requirements. For instance, modules might use U.S.-made cells but foreign-made wafers, or vice versa, affecting their domestic content percentages. The U.S. Treasury's updated guidance (Notice 2025-08) emphasizes the importance of domestically sourced components, particularly U.S.-made wafers and cells, in achieving higher domestic content scores.
Common Misconceptions About Domestic Content Modules
Some manufacturers market their products as "domestic content" simply because they are assembled in the U.S., even if key components like wafers or cells are sourced internationally. Buyers need to verify that all critical components meet domestic manufacturing requirements to ensure eligibility for the tax credit
Myth #2: Domestic Content Modules Are Too Expensive
While domestically manufactured modules may have a higher upfront cost, they offer long-term value:
The 10% bonus tax credit can offset the higher initial costs for the entire solar project, not just the modules. This credit applies to the total project cost, including other components, making the overall investment more attractive. Additionally, developers can strategically mix and match modules to optimize costs while still qualifying for the domestic content bonus. By combining fully domestic modules (like those from Imperial Star Solar) with Southeast Asia modules, developers can potentially lower the average total cost of the project while maintaining eligibility for the 10% tax incentive.
Fully domestic modules reduce reliance on international supply chains, offering greater stability and predictability for projects.
Why This Matters?
The U.S. Treasury's updated guidance reflects a push to strengthen American manufacturing by encouraging developers to source more materials domestically. For buyers, this means:
Maximizing Incentives: Only projects using truly domestic modules will qualify for the full 10% bonus credit.
Ensuring Compliance: Buyers must carefully evaluate their suppliers to ensure all critical components meet domestic content requirements.
Improving Supply Chain Stability: Domestic sourcing reduces reliance on foreign suppliers, minimizing risks from global disruptions and ensuring consistent availability of key components.
Imperial Star Solar's Commitment to Domestic Content
At Imperial Star Solar, we prioritize transparency and quality. Our modules are manufactured in the United States using U.S.-made crystalline silicon cells, ensuring they meet or exceed domestic content requirements. We have strategically partnered with Suniva to incorporate U.S.-made solar cells into its modules, ensuring compliance with these requirements and enabling customers to claim the 10% Domestic Content Bonus Investment Tax Credit.
Additionally, Imperial Star's partnership with CZT Energy USA further enhances its domestic content capabilities by using locally sourced aluminum framing for module production.
These partnerships position Imperial Star Solar as a leader in providing truly domestic solar solutions that meet the stringent criteria for tax.
By choosing our products, customers can confidently pursue available tax incentives while supporting American manufacturing and energy independence.
Calculate Your IRA Bonus
We're excited to announce the soft launch of our Domestic Content Module Calculator, designed to help you easily determine the domestic content percentage of solar modules. This tool simplifies the process by allowing you to calculate the percentage of domestic content in your solar modules, which is crucial for qualifying for bonus tax credits. As the domestic content requirements continue to evolve, reaching 45% in 2025 and 50% in 2026, our calculator ensures you can accurately assess if your modules meet these thresholds. Stay tuned for more updates and detailed guidance on how to use this valuable resource to optimize your solar projects.
Monthly Highlights
Intersolar North America 2025: Feb 25-27 | San Diego, CA
Imperial Star Solar showcased its latest innovations and strategic initiatives at Intersolar North America 2025 in San Diego from Feb 25-28, 2025, reinforcing its commitment to advancing the U.S. solar industry through domestic manufacturing, partnerships, and policy alignment.
Infocast 2025: Mar. 16-19 | Phoenix，AZ
We’re energized by the rising focus on U.S.-made components, yet clear gaps remain—misconceptions about domestic cell availability/quality and policy uncertainties are shaping strategies. Industry leaders are actively collaborating to turn challenges into opportunities.
UPCOMING INDUSTRY EVENTS
We're thrilled to announce our participation in two major industry events this June and September. These events provide excellent opportunities to explore the latest trends, connect with industry leaders, and discover how Imperial Star Solar can support your solar projects.
PV Module Tech Conference 2025
Date: June 17-18, 2025
Location: Napa, California
RE+ 2025
Date: September 8-11
Location: The Venetian & Caesars Forum, Las Vegas, NV