Microsoft [MSFT:US] has inked a solar panel procurement agreement with Qcells, a clean energy subsidiary of South Korean conglomerate Hanwha Group [000880:KS], as reported by Reuters on January 8. Under the agreement, Qcells will supply 12 gigawatts (GW) of US-made solar panels and services to Microsoft, supporting the tech giant’s climate and renewable energy goals. These solar panels will be manufactured at Qcells’ huge solar panel factory in Georgia, which is scheduled to commence operations in late 2024. The two companies described the deal as one of the largest-ever transactions of its kind, saying it will cement Microsoft’s position as one of the world’s largest buyers of renewable energy.

This marks an expansion of the existing clean energy partnership between the two entities. In January 2023, Qcells formed a strategic alliance with Microsoft to supply at least 2.5 GW of solar panels and related services to Microsoft’s renewable energy projects, equivalent to powering 400,000 homes. The collaboration would contribute to Microsoft’s ambition of powering its operations with 100% renewable energy by 2025. In addition, Qcell’s Georgia factory also accords with Microsoft’s strategic objective to build solar supply chains rooted in the US, aiming to mitigate supply chain risks. Last year, the Biden administration introduced the Inflation Reduction Act (IRA), which outlined various incentive measures to promote US production of clean energy components. These measures aim to reduce dependence on foreign-produced clean energy components, targeting Chinese manufacturers that have dominated the solar supply chain.

Sources:

https://www.reuters.com/sustainability/climate-energy/microsoft-qcells-strike-massive-supply-deal-us-made-solar-panels-2024-01-08/

https://www.esgtoday.com/microsoft-signs-12-gw-u-s-solar-panel-procurement-deal-with-qcells/

https://news.microsoft.com/2023/01/25/microsoft-and-qcells-announce-strategic-alliance-to-curb-carbon-emissions-and-power-the-clean-energy-economy/

https://www.reuters.com/sustainability/climate-energy/us-treasury-unveils-rules-clean-energy-manufacturing-subsidy-2023-12-14/