CIG International Group (CIG) is now poised to manufacture high-quality solar panels in the USA. This major holding company recently acquired manufacturing equipment as well as whole established facilities in College Station, Texas. This means the US finally has a major domestic source of photovoltaic cells. This new entity, CIG Solar Manufacturing (CSM), aims to give the American solar energy industry a considerable boost.
The Creation of CIG Solar Manufacturing (CSM)
CIG is a holding company with an impressive portfolio of assets in North America. It covers a wide range of diverse industries, from real estate and finance to multiple sources of energy. The company has also realized substantial returns from exiting businesses in direct lending, capital markets intermediary services, and franchise finance.
One of CIG’s branches is CIG Renewables, which focuses on growing enterprises in the green energy space. Combined, these efforts produce more than three gigawatts (GW) of energy from renewable sources.
Adding the Texas facilities and equipment enables CIG to manufacture solar panels domestically in the US. This new platform company, now named CIG Solar Manufacturing (CSM), supplies the technical foundation upon which the verticalization of CIG Renewables rests. The acquired assets were initially created in 2020 through a joint venture with various investors, including SDC Capital Ventures LLC.
“CIG’s vision, capabilities, and focus on meeting the market for renewable energy products resonated with us and the team that we have built,” Charles Schaffer, President of SDC, stated. “We look forward to partnering with CIG, with the goal of continuing to produce the premier quality made-in-the-USA products and driving sustainable infrastructure investment.”
CSM constitutes an important step in the re-Americanization of the solar manufacturing industry.
CSM returns solar manufacturing to the USA
According to POWER Magazine, while solar technology began in US labs and the US exported more photovoltaic cells than it imported until 2011, China came to dominate global solar manufacturing in subsequent years.
The formation of CSM challenges China’s supremacy, bringing solar manufacturing back to its home country. “The market has been starved for US-made modules,” says Charles Carey, CEO of CIG. “CSM will step into that void.”
Indeed, POWER Magazine reports that the US is experiencing a massive upsurge in demand for domestically produced solar panels.
Carey anticipates that CSM will start producing photovoltaic cells in August 2024 and be able to produce 1 GW of solar energy starting in 2025. Notably, the products CSM ushers to market will be rated as Bloomberg New Energy Finance Tier 1.
What is Bloomberg Tier 1?
Bloomberg New Energy Finance Tier 1 companies are generally five years or older, have a robust Research & Development program, and utilize fully automated, advanced production systems. They release their own brand of products that they manufacture themselves. They have also secured non-recourse financing from six financial institutions in the previous two years. This means their facilities and equipment are not at risk of being forfeited as collateral on a loan.
These indicators mean Tier 1 companies are highly stable corporations. They are worthy of consumers’ highest level of trust and can be counted on to fulfill the terms of their warranties if needed.
In the solar industry, only approximately two percent of manufacturers have earned Tier 1 status. The vast majority of solar panel producers — 90 percent — do not actually manufacture their own components but merely assemble them from parts purchased from other companies. Since these businesses often assemble the panels manually, the quality of their products can vary substantially. These companies are also usually only a year or two old.
CSM’s ability to fabricate and distribute Made-in-the-USA Bloomberg Tier 1 solar panels aims to shake up the American solar industry.
Leading an American solar power revolution
There’s never been a better time to produce Tier 1 solar panels in the U.S. According to Carey, the passage of the Inflation Reduction Act in 2022 spurred a renaissance in this industry. “Solar development favoring domestic content has never been more relevant and necessary,” he says.
The Inflation Reduction Act gives Americans compelling incentives to invest in solar arrays. Importantly, it refunds 30 percent of the costs associated with installing solar — including parts and labor — in the form of a tax credit. These benefits are open to American households who invest in solar systems throughout 2024 and 2025.
This legislation has prompted a surge of growth in the solar industry. The Solar Energy Industries Association (SEIA) predicts that solar will be responsible for more power than coal by 2031, and the U.S. will have more than four times its current amount of solar power capacity by 2033. In addition, solar power will dramatically reduce the amount of carbon pouring into the atmosphere. As SEIA’s report states, “The solar industry’s annual CO2 emissions offsets will increase from 169 million metric tons (MMT) today to more than 459 MMT by 2033.”
Picture every house East of the Mississippi running on solar power — that is the amount of electricity that the SEIA predicts the US will be able to produce in the next ten years. By investing in its new Texan assets, CIG has positioned itself to lead this solar-energy transformation.
CSM is the future of solar energy
In acquiring its manufacturing and distribution facility in Texas, CIG Renewables is ready to supply solar developers on a massive scale. The solar industry will never be the same. Thanks to this groundbreaking effort, the future of solar energy is American.
Published by: Nelly Chavez