Contrary to the initial explanation, residential solar projects may use the domestic content incentive credit in the Inflation Reduction Act (IRA). However, homeowners are not the ones who receive tax exemptions.

When the project uses domestically produced solar modules, they can add an additional 10% on top of the Investment Tax Credit (ITC), which is a 30% tax credit on the total cost of renewable energy projects. ITC is a long-term subsidy for the solar energy industry, which has historically provided subsidies for different market sizes. But not every customer can receive domestic content - as well as other bonus adders from the Irish Republican Army.

Individual homeowners cannot apply for domestic content bonuses, but businesses can. In order to meet the domestic content qualification of residential projects, the array must be leased to the homeowner or the homeowner must sign a power purchase agreement. In other words, residential projects can receive domestic content dividends through third-party ownership (TPO), and companies that provide financing for the project can also earn points.

Homeowners and contractors will not be able to directly obtain credit, "said Glenn Woodruff, Vice Product Marketing Manager at IronRidge, a solar bracket manufacturer. Whether TPO financiers choose to share any benefits of [domestic content bonuses] with installers and/or homeowners depends entirely on the discretion of each TPO financier

Sunnova is one of these TPO financiers, a national solar installation company engaged in the residential and commercial markets. On September 1st, Sunnova mandated that all solar projects of companies must comply with domestic content requirements.

As an American solar company, it is in our vested interest to ensure that our business has a positive impact on employment in the United States, and we are pleased to achieve this goal by utilizing IRA's domestic content bonuses, "said Russell Wilkerson, head of Sunnova Enterprise. One of IRA's goals is to increase employment opportunities in the US manufacturing industry, and Sunnova is proud to support these efforts. In addition, meeting the investment tax credit can bring cash appreciation to Sunnova

Two years have passed, and the Ministry of Finance has continuously updated the IRA, utilizing feedback from industry members to develop its guidance. Earlier this year, another round of domestic content qualification guidelines was released and the options for submitting required documents were expanded.