T1 Energy Inc. announced it has finalized its first sale of Section 45X production tax credits to an investment-grade buyer on December 30, 2025. The transaction is valued at $160 million. The sale includes credits generated by the company’s domestic manufacturing activities through the end of the 2025 calendar year.
The deal utilized a tax credit transferability mechanism. T1 Energy sold the credits at a ratio of 91 cents per dollar of tax credit value. This transferability market allows clean energy manufacturers to monetize tax benefits directly by selling them to third-party buyers.
Citigroup Global Markets acted as the financial advisor for the transaction. The parties involved said they intend to perform a final adjustment of the transaction in February 2026. This true-up will occur once the company confirms its total module production volume for December 2025.
Proceeds from the sale are linked to ongoing operations at T1 Energy’s G1 Dallas facility and construction at the G2 Austin solar cell plant.
The Section 45X advanced manufacturing production credit provides a per-watt incentive for solar components produced within the United States. By monetizing these credits, T1 Energy gains immediate liquidity without the need for traditional debt or equity financing. This structure is intended to improve the company’s cash position and fund capital expenditures.
The domestic solar manufacturing sector expanded significantly throughout 2025. U.S. module manufacturing capacity increased by 42% during the first three quarters of the year, said the Solar Energy Industries Association (SEIA). New facilities for solar cells and wafers also commenced operations in several states.
Also in December, T1 Energy announced it entered a three-year supply agreement to provide U.S.-made solar modules to Austin, Texas-based developer Treaty Oak Clean Energy.
The supply deal involves a minimum of 900 MW of modules over the three-year span.
T1 will supply modules paired with solar cells manufactured at its planned manufacturing facility in Austin, Texas. As early as end of 2026, T1 said it expects to offer modules with greater than 60% domestic content, with further increases anticipated.
T1 Energy is set to be a major player in solar manufacturing in Texas. It is currently constructing an $820 million cell fab in Austin called G2. G2 Austin is expected to begin producing solar cells in the second half of 2026 and is planned to reach an annual output of 5 GW of cells per year. The facility is expected to create up to 1,800 full-time jobs. T1 Energy said the site will produce advanced TOPCon solar cells.
Construction of the first 2.1 GW phase of T1’s G2 Austin solar cell fab started in December, said the company.
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