Toyo says products made in Texas facility in 2025 expected be eligible for 45X tax credits

Toyo Solar, a Japanese solar panel maker, expects its Texas factory to qualify for federal manufacturing tax credits this year. These credits, called Section 45X, come from the 2022 Inflation Reduction Act and reward companies for making solar components inside the U.S. Toyo says a third-party review found its Texas plant meets the requirements.

This is mainly industry news, but it points to more U.S.-made solar equipment reaching the market. Toyo plans to build out 2 gigawatts of solar panel production and 1.5 gigawatts of a newer cell technology called HJT (heterojunction), which the company says could generate about $200 million a year in tax credits once fully running. Toyo says its HJT panels should convert 20 to 25 percent more sunlight into power than today's thin-film panels, meaning more electricity from the same roof or lot space. The company also sees HJT as a stepping stone to future "tandem" solar cells that combine multiple materials for even higher efficiency.

For homeowners, none of this changes rebates or programs available today. But it signals that more efficient, domestically produced solar panels may become available over time, potentially at competitive prices since manufacturers get a per-watt tax credit (7 cents for modules, 4 cents for cells) through the end of 2027. If you're weighing solar for your own roof, this is a sign the U.S. supply of panels — and possibly their performance — is set to grow in the coming years.