Enphase stated that this is the first of six planned US factories. As part of a trip in South Carolina to support its economic policies, US President Biden will visit the factory.
Flex CEO Revathi Advothi said of the factory opening, "Like us, Enphase is committed to accelerating the global transition to clean energy through advanced technology and strategic regional manufacturing. We appreciate our 15 year collaboration with Enphase to bring IQ micro inverters to the market faster and on a larger scale globally through reliable and sustainable business practices
Enphase and Flex have established a partnership in Romania, where Flex produces Enphase's micro inverters, similar to the factory in South Carolina. The United States is the dominant market for Enphase, accounting for approximately two-thirds of its revenue in the fourth quarter of 2022.
Enphase stated that it is committed to expanding its business in Europe. The factory was implemented through the Inflation Reduction Act (IRA), which includes financial incentives for domestic clean energy manufacturing. Recently, the US Treasury Department issued guidance on the domestic content level required for solar panels to obtain the 10% additional investment tax credit (ITC) required by the IRA. The requirements include electrical components such as inverters and tracking brackets.
A press release released by the Office of the President before visiting the factory stated that the IRA has promoted $11 billion in clean energy and manufacturing investments in South Carolina. The press release also highlighted that the current Republican state representative voted against the bill last year.
In March, Hounen Solar America, the US subsidiary of Chinese company Zhejiang Haoneng Optoelectronics Co., Ltd., announced plans to build a 1GW component factory in Orange burg County, South Carolina, which means an investment of $33 million.
The White House views the factory of Enphase as an example of the positive impact of "Biden economics", stating that Biden economics focuses on job creation and "bottom-up, from the inside out, rather than top-down" economic construction.