Microsoft and South Korea’s Qcells announced a groundbreaking agreement on Monday to supply 12 gigawatts (GW) of American-made solar panels through 2032, marking one of the largest deals of its kind.
Strategic Partnership for Renewable Goals
The deal solidifies substantial and stable demand for solar panels manufactured by Qcells at its newly established $2.5 billion factory in Georgia. Microsoft, aiming to power its operations with 100% renewable energy by 2025, strategically entered the partnership to mitigate supply chain risks.
Expanded Commitment for Clean Energy
Initially agreeing to a 2.5 GW contract a year ago, Microsoft and Qcells have expanded their collaboration, with Microsoft now committing to a total of 12 GW. This commitment is sufficient to power approximately 1.8 million homes, according to the companies.
Building a US Solar Supply Chain
Qcells sees the collaboration with Microsoft as an opportunity to establish a solar supply chain in the United States, challenging the dominance of China in the solar industry. The comprehensive approach includes the production of silicon ingots, wafers, cells, and modules.
Reducing Reliance on Overseas Production
Most solar panels assembled in the United States currently rely on components manufactured in Asia. The partnership aligns with President Joe Biden’s Inflation Reduction Act, encouraging the domestic production of clean energy components to diminish dependence on overseas goods.
“We are the only ones that are really building up the full supply chain. And this is thanks to the partnership that we’re having with Microsoft,” emphasized Jihyun Kim, an executive vice president at Qcells, a division of Hanwha Solutions Corp.
Source：channelnewsasia.com
