Hanwha Solutions to Invest 3.2 Trillion Won to Build North America's Largest Solar Panel Factory

Establishment of 'Solar Hub' Production Complex in Georgia, USA
Annual 3.3GW Production from Ingots and Wafers to Modules
Completing Solar Battery Value Chain... Total 8.4GW

Lee Gu-young, Head of Hanwha Solutions Q CELLS Division, is explaining the 'Solar Hub,' the largest solar power complex in North America. Photo by Hanwha Solutions

[Asia Economy Reporter Donghoon Jung] Hanwha Solutions is investing approximately 3.2 trillion KRW to build the largest solar panel factory in North America. This investment aligns with the rapidly growing solar market following the implementation of the Inflation Reduction Act (IRA). The company envisions completing the solar value chain in North America, from raw materials such as ingots and wafers to cell and module production. The production complex is named the "Solar Hub."

On the 12th, Lee Guyoung, CEO of Hanwha Solutions Q CELLS division, stated, "Establishing the Solar Hub is aimed at maximizing competitiveness by fully leveraging the U.S. government's energy transition policies," adding, "Once the Solar Hub is fully operational, we expect significant improvements in solar business sales and profitability."

Hanwha Solutions' Solar Hub investment is the largest in the history of the U.S. solar energy industry. It is also the first time a single company has established production lines for all key solar value chain segments in North America. The solar module production capacity planned for the factory in 2025 is approximately 8.4 GW, enough to supply electricity for about 1.3 million U.S. households for one year.

Once the planned mass production system is in place, Hanwha Solutions is expected to generate sales of about 440 million USD (approximately 548.6 billion KRW) from module production alone. CEO Lee said, "We anticipate being able to sell modules at around 44 cents per watt," adding, "Additionally, sales of high value-added residential and commercial solar modules and revenue from power EPC (Engineering, Procurement, and Construction) services are expected to contribute further."

Hanwha Solutions will first invest 3 trillion KRW in Cartersville, Georgia, to build an integrated production complex for ingots, wafers, cells, and modules, each with a capacity of 3.3 GW, aiming for commercial production by the end of next year. The solar value chain consists of five stages: "Polysilicon (raw material for solar cells primarily made of silicon) → Ingot (cylindrical block made by melting polysilicon into crystals) → Wafer (thin slices cut from ingots) → Cell (solar cell) → Module (panel assembled from solar cells) → Power generation (construction and operation)." The Solar Hub will produce the four products excluding the raw material polysilicon in one location.

The new factory site in Cartersville is about a 55-minute drive from Atlanta, the capital of Georgia, and approximately 33 minutes from Dalton, where Hanwha Solutions' existing module factory is located. Its accessibility facilitates logistics operations and workforce recruitment.

In addition, Hanwha Solutions plans to increase the annual production capacity of its Dalton, Georgia module factory, which began mass production in 2019, from the current 1.7 GW to 5.1 GW by the end of this year. The company will complete a 1.4 GW production line expansion in the first half of this year and add another 2 GW by year-end. Once the new and expanded facilities in Dalton and Cartersville are completed by the end of next year, the total local module production capacity will reach 8.4 GW.

Although Hanwha Solutions is investing over 3 trillion KRW, it expects to receive tax credit benefits exceeding 1 trillion KRW in the future. The IRA guarantees tax credits and subsidies for both investment and production. It provides a 30% tax credit on investments in eco-friendly energy such as solar power and offers subsidies for each segment of the solar value chain: 7 cents per watt for modules, 4 cents for cells, and 4.69 cents for ingots/wafers. The IRA's eco-friendly energy subsidies are provided through a "direct pay" system, which pays the amount directly rather than reducing taxes upon sale.

If Hanwha Solutions proceeds with solar value chain production as planned in 2025, it will receive tax credit benefits worth 875 million USD (approximately 1.091 trillion KRW).