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American energy market is transforming before our eyes because of one federal law: 'A huge milestone'

By manufacturing these parts in the U.S., easily disrupted supply chains are now streamlined.

By manufacturing these parts in the U.S., easily disrupted supply chains are now streamlined.

Photo Credit: Nextracker

Nextracker has created thousands of U.S. jobs by opening domestic solar tracker factories.

The Inflation Reduction Act of 2022 was designed to reduce inflation by making it easier to produce clean energy in the U.S. rather than buying power from other countries. Solar power company Nextracker has used this to build out a robust system of local manufacturers, as Solar Power World explained. The company has opened 25 U.S. factories, creating thousands of jobs, and just accomplished what the outlet called the industry's first delivery of solar trackers with 100% U.S.-made content. 

Solar panels create energy by absorbing sunlight, so their placement is incredibly important. Nextracker makes solar trackers, which allow panels to tilt to follow the sunlight in the same way a flower does. This maximizes the energy production during all daylight hours as the sun arcs from east to west. 

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Trackers like this are used mostly for large-scale solar plants that provide clean energy to communities, which lowers energy costs for households and reduces pollution. That first 100% domestic content delivery was to a 570-megawatt project in California that will generate and store solar power, per Solar Power World. To put that into context, just one megawatt can power about 600 households.

By manufacturing these parts in the U.S., easily disrupted supply chains are now streamlined, and projects that power households can be completed significantly faster.

"We secure the supply chain and provide superior on-time delivery and cost savings for project development and construction. We also significantly decarbonize our products by incorporating clean steel manufactured in the United States," said Nextracker founder and CEO Dan Shugar, per Solar Power World.

The company began investing locally more heavily when supply chain issues due to the COVID-19 pandemic grounded solar progress to a halt, Solar Power World reported.

When these crucial parts are made in the U.S., not only can projects move forward on time, but thousands of high-paying manufacturing jobs are also created. The American Clean Power Association reports that, in 2024, the U.S. boasts a clean energy workforce of 483,100.

"U.S. workers are building high-quality solar products that will help power renewable energy projects across the country," said George Hershman, CEO of SOLV Energy, per Solar Power World.

"Delivering the industry's first trackers with 100% domestic content value is a huge milestone for our customers," Shugar said.

Editor's note: A previous version of this article stated that the latest delivery was the company's first of solar trackers, when it was intended to say the company's first of 100% domestic-made parts. The article also said the company was founded during the pandemic, when the correct information is the company began its domestic investment during that time.

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