7X Energy has purchased 2 GW of Power Electronics Freesun HEM inverters in preparation for the ITC step-down. The ITC provides a 30% tax cut relative to the cost of installation to all residential, commercial and utility solar projects started in 2019, as long as they’re operational by December 31, 2023.
7X will store the equipment in its home state of Texas. Debt financing for the equipment was provided by Forethought Life Insurance Company, a subsidiary of Global Atlantic Financial Group.
The Freesun HEM inverter is designed for utility-scale solar applications. It offers the advantages of a central inverter combined with the modular design of string architecture. Furthermore, it also has an integrated medium voltage transformer and switchgear. Its use in utility-scale solar plants delivers considerable savings in CAPEX, while greatly simplifying design and installation. The Freesun HEM inverter also allows future retrofits using the functionality “bus plus” in order to connect it to Freemaq DC/DC converter, and therefore allowing energy storage. With the “bus plus” capability, 7X can easily apply them on their solar-plus-storage projects, if requested by the customer.
“Recognizing the need to ‘safe harbor’ equipment as the ITC begins its step-down process, we took the lead early in the year before supply ran out to ensure our contracted and un-contracted projects will maintain the 30% tax credit for our energy buyers over the next several years,” said Clay Butler, president and CEO of 7X. “We chose to safe harbor the Freesun inverter by Power Electronics to avoid the price volatility around modules and because we liked the storage readiness aspect of the inverter allowing us to add storage easily to our projects.”
News item from 7X Energy