Last week, the IRS released an updated table to calculate the domestic content of clean energy projects—like solar, onshore wind, and storage—to determine eligibility for the 10% domestic content bonus tax credit.
To qualify for the adder, projects need to hit a certain weighted average domestic content percentage across all equipment based on the year the project starts construction. However, developers often face challenges due to cost opacity. For example, a solar developer may know their panels have domestic glass and framing, but non-domestic cells, yet they have only a single invoice for the panels, making it difficult to assess whether they meet the domestic threshold.
To address this, the Department of Treasury released the safe harbor table, providing a standardized cost breakdown for specific clean energy technologies. Developers can rely on these tables without having to resort to complex calculations, streamlining compliance with domestic content guidelines.
These tables were first released in May 2024, but this January update provides key updates to cost breakdowns for solar and storage. Under the new tables, utility-scale and rooftop solar projects that use US-manufactured modules with crystalline silicon cells and wafers will qualify for the bonus credit. Utility-scale batteries will qualify as well if using US-made cells.
To help developers understand this new guidance and understand if their projects qualify for the domestic content adder, the Concentro team is releasing the Domestic Content Calculator. Developers can input their project details and source of materials to understand if their projects qualify under this new guidance.
What Does the Domestic Content Calculator Do?
The Domestic Content Calculator helps developers determine whether their projects meet the criteria for the domestic content bonus adder. By selecting the construction year, technology (solar, wind, or standalone BESS), and battery energy storage system type (if applicable), the tool provides a tailored list of relevant subcomponents. Users then input the estimated percentage of each subcomponent produced domestically.
Based on these inputs, the tool calculates the total weighted domestic content percentage, compares it to the required threshold, and delivers a clear yes-or-no answer on eligibility. This streamlined approach ensures developers have the clarity they need to unlock the bonus credit with confidence, eliminating complex manual calculations.
Why This New Guidance Matters
At Concentro, we’re excited about this updated guidance because it provides much-needed clarity for developers seeking to claim the domestic content adder. Before this guidance, determining eligibility for the domestic content adder remained challenging despite the initial safe harbor tables, as key definitions and cost characterizations lacked the precision needed to streamline calculations. With the IRS's safe harbor tables and our new tool, developers can now confidently unlock the additional 10% tax credit, making clean energy projects more financially viable.
Get Started with the Domestic Content Calculator
Try the Domestic Content Calculator here and see how easy it is to determine eligibility. If you have questions or need support with clean energy project financing or unlocking tax credit transferability, connect with us here. The Concentro team is here to help you navigate these opportunities and maximize your project's value.
