Hanwha Solutions said on May 21 it recently sold about 200 billion won ($130 million) of the Advanced Manufacturing Production Credit (AMPC) it received last year to a third party. The company plans to keep pursuing early cash conversion of AMPC to speed up improvements in its financial structure.

The AMPC is a programme that grants tax credits for solar products manufactured in the United States. Hanwha Solutions produces solar modules at its plants in Dalton and Cartersville in the United States and receives AMPC of 7 cents per watt. AMPC can be received in the form of subsidies or tax credit credits, and the credits can be transferred to third parties. Receiving it as a subsidy typically takes more than 1 year from the corporate tax filing date, while using the U.S. securitisation market can bring forward the realisation timing.

Hanwha Solutions received a total of 1.3 trillion won in AMPC from 2023 to 2025. Including this sale, the cumulative amount sold reaches 1.13 trillion won ($812 million). The company said it plans to complete negotiations on a contract to sell the remaining 2025 AMPC by the end of the first half.

The amount received in the first quarter this year was about 220 billion won. The expected annual amount received is about 1 trillion won ($675 million), reflecting the completion of the Cartersville plant. Annual results were tallied at 209.6 billion won in 2023, 555.1 billion won in 2024 and 536.0 billion won in 2025.

If the Solar Hub currently under construction is completed this year, AMPC eligibility will expand from modules to include cells and wafers. The company said the Solar Hub is North America’s largest integrated solar production complex, and once completed, the amount of AMPC that can be received annually is expected to increase to more than 1 trillion won.

Jaebin Lee (이재빈), head of finance at Hanwha Solutions, said, "We plan to continue securing stable cash flow through AMPC securitisation and improving our financial structure." He added, "We will focus on solidifying the foundation for mid- to long-term growth."