Italy’s Enel to Invest Over $1bln in Oklahoma Solar Factory, Boosting US Clean Energy Manufacturing

Italy’s Enel to Invest Over $1bln in Oklahoma Solar Factory, Boosting US Clean Energy Manufacturing

Enel’s investment marks a significant move in the US push for a domestic clean energy manufacturing sector.

Italian energy company Enel has announced its plans to invest more than $1 billion in a solar cell and panel factory in Inola, Oklahoma. The move is aimed at capitalizing on the United States’ efforts to establish a homegrown clean energy manufacturing industry and compete with China. Enel’s facility is expected to become one of the largest solar equipment producers in the country, helping to reduce reliance on imported panels.

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US President Joe Biden hailed Enel’s investment as evidence of the success of his “Investing in America” agenda and a sign that American manufacturing is making a comeback.

Enel’s investment aligns with US President Joe Biden’s landmark climate change law.

Enel’s investment in the Oklahoma factory represents one of the largest commitments to solar manufacturing since the passage of the Inflation Reduction Act (IRA), a key climate change law signed by US President Joe Biden last year. Under the IRA, projects using domestically manufactured solar cells in their panels may qualify for a valuable bonus tax credit, amounting to 10% of the project’s cost. This incentive has motivated Enel’s decision to establish a manufacturing presence in the US.

Enel’s factory will create jobs and boost solar production capacity in the US.

Enel’s solar factory is expected to employ 1,000 people by 2025, providing a significant economic boost to the region. The facility will have an annual production capacity of 3 gigawatts (GW) of solar products, with the first panels expected to be manufactured by the end of 2024. Furthermore, Enel anticipates the potential to double production to 6 GW per year, creating an additional 900 jobs. The company’s manufacturing arm, 3Sun USA LLC, chose the Inola site due to its favorable infrastructure, including access to water and power utilities, as well as a ready workforce to support the large-scale operation.

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Giovanni Bertolino, head of 3Sun USA, emphasized the importance of speed in taking advantage of the IRA incentives, which will gradually phase out by the end of the decade. The company aims to begin construction later this year and is set to receive up to $180 million in funding from the state of Oklahoma, subject to fulfilling employment and investment requirements.