Industrial Implications of the U.S. Inflation Reduction Act for Domestic Photovoltaic Cell and Module Manufacturing Capacity

Abstract

The U.S. Inflation Reduction Act of 2022 introduced the most comprehensive set of incentives for domestic photovoltaic manufacturing in the country's history, with the Section 45X advanced manufacturing production credit and Section 48C investment tax credit jointly altering the economics of cell and module production. This perspective article assesses the early industrial response, drawing on announced and operational facility capacities through 2023 and the early-2024 capital-flow patterns. We examine the supply-chain implications across wafer, cell, and module tiers, the workforce-development requirements at gigawatt scale, and the policy-stability questions that affect long-term investment commitment. The discussion is framed for industry strategists and policy analysts assessing the durability of domestic capacity build-out.