The renewable energy sector just witnessed a landmark deal that could reshape how solar manufacturers finance their operations in America. T1 Energy has completed its first major tax credit sale, converting government incentives into immediate cash flow through a sophisticated financial transaction. This isn’t just another corporate announcement—it’s a glimpse into the evolving mechanics of how clean energy companies are learning to navigate and monetize the complex web of federal tax policies designed to accelerate domestic manufacturing.
T1 Energy completes groundbreaking Section 45X credit sale
T1 Energy reported the closing of a sale of section 45X production tax credits worth $160 million to a “leading, investment-grade buyer of tax credits.” This sale covers the entire set of qualified and earned production tax credits under a third party until December 2025. This will be followed by a “true-up” in February 2026. Citigroup Global Markets acted as the financial advisor to T1 Energy in connection with the latter.
The acquisition is a milestone for T1, as the company has diversified its interests from working on batteries in 2024 to the production of solar products with the acquisition of a solar module manufacturing facility in Texas from Trina Solar. T1 reported sales of 725MW of modules for Q3 of 2025 and hopes to put its tunnel oxide passivated contact cell production facility into commercial operation the following year.
Strategic pricing embodies the competitive tax credit system
The T1 Energy priced the sale of its PPTCs at a ratio of $0.91 for each dollar of PPTCs being sold. This is about the same price levels for the last sale of PPTCs, and an indication that the transfer market for the sale and purchase of tax credits in America has been well established. This sale also shows the ability of T1 Energy to conduct a sale of PPTCs and invest in American manufacturing operations.
“The real significance of these credits is that we now have the mechanism to verify the value of monetizing them, and we are continuing our investment in American manufacturing,” said Evan Calio, the Company’s Chief Financial Officer.
The transaction helps the Company in its growth in G1_Dallas, which is now fully ramped, and G2_Austin, its solar cell fabrication facilities under construction in the US. Such flexibility provided by the transaction helps T1 to reinvest the proceeds and expand manufacturing capacity, rather than through traditional funding avenues.
Compliance with FEOC ensures the tax credit continues
T1 Energy has also planned agreements with Trina Solar and others that meet the US regulations for a foreign business of concern, indicating that companies cannot take advantage of the tax credit if the technology comes from countries that pose a possible threat to security. T1 Energy has invested a substantial amount of capital in the repayment of debt to Trina Solar. The debt ratio that T1 Energy held with Trina Solar was in accordance with the FEOC regulation.
T1 Energy has solved the problems of intellectual property licensing agreements with a company called EverVolt, which is based in India. The explanation given by the corporation was that a large portion of its production in 2026 would be based on components and materials that originate from within the USA, either through companies such as T1 or through other companies based in the USA, Nextpower, and Corning.
The Chairman and CEO of this corporation, Dan Barcelo, made it clear that “We fully anticipate continuing with our strategy to manufacture FEOC-compliant, High Domestic Content, and High Efficiency Solar Energy Products for our valued customers.”
The successful transfer of the tax credit in T1 Energy shows that solar producers have been adapting and taking advantage of government initiatives to encourage faster production in America. This is a great approach for accessing funding for immediate growth and still being in compliance with the government. Since more businesses are adopting the process, it is clear that the method could be adopted for funding the solar business in America.
