Hanwha Q CELLS has surpassed 10,000 contracts for its Solar Financing Service launched last year in the United States. As the solar energy division of Hanwha Solutions, Hanwha Q CELLS is leaping from a simple manufacturing company to a “comprehensive energy solution company” with a strategy to overcome the manufacturing industry slump due to the oversupply from Chinese companies.
According to industry sources on Feb. 12, the contracts for Empower, the solar financing service launched by Hanwha Q CELLS in January last year, exceeded 10,000 by the end of last month. The cumulative contract size is US$500 million. Empower is a service that offers loans based on down payments when individuals install solar panels on their home roofs, with annual interest rates ranging from 3.99% to 9.99%.
Market research firm Wood Mackenzie reports that as of 2022, 70% of residential solar installations in the United States were financed through installment plans. Traditionally dominated by financial companies offering financing, Hanwha Q CELLS has emerged as the first solar manufacturer to enter this market. With the highest market share in residential solar modules in the United States, Hanwha Q CELLS expanded its financial service users based on its 200 sales offices nationwide. The company explained that it has expanded the market by linking solar equipment repair and maintenance with financial services, leveraging its characteristic as a manufacturer.
The U.S. solar market is experiencing rapid growth due to the benefits of the Inflation Reduction Act (IRA). The U.S. government, with the intent of encouraging the transition to renewable energy through incentives, will offer a tax credit covering 30% of the asset value of clean energy facilities installed in homes across the U.S. by 2032.
In the face of a sharp decline in global solar equipment prices due to the oversupply from Chinese companies, Hanwha Q CELLS plans to enhance its profitability by expanding services like Empower. Hanwha Q CELLS also plans to launch a new product within the first quarter that installs solar power for customers free of charge and sells the electricity produced to other companies through Power Purchase Agreements.