Image: Getty Images
Recently, Mitsubishi Corporation announced plans to invest $3.9 billion in its US subsidiary Nexamp over the next four years. This investment aims to expand the company’s solar power generation capacity in the United States from the current 1.1 gigawatts (GW) to 2.9 GW—a substantial increase of 160%.
In addition to ramping up investment, Mitsubishi is considering restructuring its supply chain. Nexamp previously primarily relied on suppliers from Southeast Asia for solar modules. However, under the new plan, the company will shift toward procuring modules from US-based manufacturers. For instance, it will collaborate with Canadian company Silfab Solar to avoid high import tariffs.
Through localized procurement and investment, Mitsubishi can significantly reduce project costs and enhance its return on investment (ROI). The US Inflation Reduction Act (IRA) provides generous tax incentives for domestic clean energy manufacturing, including subsidies of up to $0.70 per watt. While President Trump is making efforts to repeal the act, many Republican-leaning states and counties benefit from it—such as through clean energy projects or electric vehicle battery factories—making the ultimate outcome uncertain.
