T1 Energy secures $160M in tax credit sale to fund Texas solar expansion

T1 Energy (NYSE:TE) has successfully monetized $160 million of Section 45X production tax credits (PTCs), providing a significant non-dilutive capital injection to accelerate its build-out of a domestic solar supply chain.

The transaction, announced Tuesday, involved the sale of credits to an undisclosed investment-grade U.S. buyer at a price of $0.91 per $1 of credit.

The deal covers PTCs accrued and verified through December 2025, with a final "true-up" payment scheduled for February 2026 once year-end production volumes at the company's Texas facilities are confirmed.

Citigroup Global Markets acted as the sole financial advisor on the deal.

The 45X credits, established under the Inflation Reduction Act, provide direct incentives for domestic manufacturers of clean energy components.

For T1 Energy, the sale validates its ability to turn federal incentives into immediate liquidity.

The proceeds are earmarked for the company’s two-pronged Texas manufacturing strategy: sustaining the now fully ramped 5-gigawatt (GW) G1_Dallas module plant and funding the ongoing construction of G2_Austin, a $425 million solar cell fabrication facility in Rockdale.