7X Energy Announces Purchase of 2 GWac of Inverters from Power Electronics
The safe harbor purchase allows 7X to claim full ITC on its projects until 2023
AUSTIN, TX – 7X Energy, Inc. (“7X”), a leading solar developer with projects across the U.S, announces the purchase of inverters that would qualify more than 2,000 MWac of projects for 100% of the Investment Tax Credit (ITC) if these projects are placed in service before the end of the fourth year of their start date (2023). The safe harbor procurement represents one of the largest purchases by an independent solar developer in the U.S. with over $100 million of equipment procured.
7X negotiated and procured from Power Electronics, the leading U.S. solar inverter supplier, 2 GW of Freesun HEM inverters. 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 percent 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.”
“Power Electronics has based its growth on the development of cutting-edge technologies designed to improve reliability even more and meet the demanding specifications of international standards, and always with the valuable partnership of innovation leaders in utility-scale solar development such as 7X Energy,” remarked David Salvo, CEO of the company.
For additional information on 7X’s solar portfolio, please contact us.