Canadian Solar Inc. is investing more than $800 million to build a 5-gigawatt (GW) photovoltaic cell production facility in Indiana, the Ontario-based company said Oct. 30.

Located at the River Ridge Commerce Center in Jeffersonville, Indiana, the facility is expected to start producing about 20,000 high-power modules per day by the end of 2025. Canadian Solar said the modules produced at the Indiana facility will be used at the 5-GW module assembly plant in Mesquite, Texas.

“Establishing this factory is a key milestone that will enable us to better serve our U.S. customers with the most advanced technology in the industry,” Thomas Koerner, senior vice president of Canadian Solar, said in a news release. “This is the second of the anticipated long-term investments we expect to make in the U.S. as we think strategically about a local, sustainable and clean energy supply chain and to fulfill the long-term requirements of the local-content rules of the recently established IRA [Inflation Reduction Act].”

In 2022, the IRA signed into law making available advanced manufacturing production tax credits that can be applied to the domestic production of solar components such as modules, photovoltaic cells and wafers and solar-grade polysilicon, among other items. Facilities that meet domestic content requirements receive a 10% bonus under the production tax credit, according to guidance from the U.S. Treasury Department.

The new facility in Indiana is expected to create about 1,200 jobs, the company said.

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