Hanwha Solutions' Q CELLS division emphasized the need for a direct refund system in the domestic production tax credit program promoted by the government. They argue that production support is essential to maintain the solar manufacturing base, as loss-making companies without tax liabilities cannot benefit significantly from tax credits.
On October 16, Yoon Jae-yeol, Senior Executive Vice President of Q CELLS Korea, stated at the '2026 Solution Academy' that the domestic production tax credit is necessary not only for the profitability of individual companies but also for national economic stability and energy security.
Yoon assessed that expanding domestic solar power adoption must be linked to strengthening manufacturing competitiveness. According to data presented by the company, the market share of domestic solar modules fell to around 30% last year, while the share of domestic solar cells plummeted from about 35% in 2021 to approximately 3% last year. This year, it is predicted to approach 0%.
He pointed out that competition has tilted due to China's expansion of production capacity backed by substantial support. He argued that as the domestic solar market grows, it is crucial to establish a supply chain in the country, which is tied to energy security.
Yoon remarked, "Cells are the most technology-intensive and value-added segment of the solar value chain," adding, "Minimal support is necessary in this uneven playing field, and I believe the domestic production tax credit is that means."
However, he noted that for the government's proposed system to lead to actual production increases, improvements in the support method are needed. Yoon explained, "The government plan lacks provisions for direct refunds or the transfer of tax credits to third parties, and the credit limit is restricted to 50% of the cumulative investment amount."
He cited the U.S. Advanced Manufacturing Production Credit (AMPC) as a comparison, explaining that the U.S. allows companies to secure support benefits early through direct refunds and tax credit transfers.
Yoon expressed concern that without direct refunds, the industry might not fully benefit from the program, stating, "The solar industry faces significant initial investment and operational cost burdens, and it takes time to realize operating profits after investment. The industry has been continuously urging the government on this matter."
Hanwha Q CELLS anticipates that if production support aligns with domestic demand expansion, it can increase research and development and equipment investment, leading to a virtuous cycle of increased production and reduced costs. The company is also pursuing the development of next-generation products. Hanwha Q CELLS has established a pilot line for perovskite tandem cells at its Jincheon plant, aiming for mass production of tandem cells and modules by the end of 2028. Yoon introduced that the certified efficiency of large-area tandem cells is 28.6%.
The company plans to expand its business scope from module sales to power trading. Building on its existing networks with power generation companies and construction firms, it aims to connect renewable energy sources with power demand companies through power purchase agreements (PPAs) and respond to virtual power plant (VPP) projects that manage distributed generation resources.
Yoon stated, "In the past, selling modules ended our engagement with customers, but now selling modules marks the beginning of our relationship. Power plants will become resources for PPAs and VPPs, and power trading and grid stabilization can lead to market expansion and increased demand for domestic cells and modules."
* This article has been translated by AI.
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