Qcells to supply 2.5 GW of solar panels for Microsoft projects

US tech giant Microsoft Corp (NASDAQ:MSFT) has thrown its support behind the efforts of solar product manufacturer Qcells to establish a complete solar supply chain in the US, with the companies teaming up on 2.5 GW of solar panel supplies.

According to a joint announcement on Wednesday, Qcells will work with Microsoft to develop solar projects and to provide panels and engineering, procurement and construction (EPC) services to some of the projects contracted by Microsoft under power purchase agreements (PPAs). The contemplated new generation capacity is expected to require at least 2.5 GW of panels.

This is a first-of-its kind partnership where an energy off-taker is collaborating directly with a solar supplier, the companies said. Building on its target of covering 100% of its electricity consumption with renewable energy purchases by 2025, Microsoft wants to support production of green energy equipment in the regions it operates.

“Building a resilient solar energy supply chain is essential to advancing a global green energy economy. Microsoft’s partnership with Qcells will help make this vision a reality by bringing innovation and investment to rural Georgia,” said Microsoft vice chair and president Brad Smith.

Qcells, which is owned by Seoul-based Hanwha Solutions Corp (KRX:009830), announced earlier in January it will be investing over USD 2.5 billion (EUR 2.3bn) in the construction of an industrial complex for the production of solar ingots, wafers, cells and modules in Bartow County, Georgia and an expansion of its Dalton plant. The company thus expects to have a solar panel production capacity in Georgia of 8.4 GW by the end of 2024.

The attractiveness of the US as a destination for clean energy investment has improved following the passage of the Inflation Reduction Act and its climate provisions.

In addition to providing American-made solar products, Qcells has an ambition to become a leading developer for solar and energy storage systems in the US.

(USD 1 = EUR 0.919)

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