SPI Energy Co. said it signed a letter of intent to secure a 1.5 GW solar wafer manufacturing equipment.

Neither the equipment provider nor the dollar value of the deal was disclosed.

The company is targeting delivery and production of the solar wafers in the U.S. by 2023. It said it also plans to increase its solar wafer manufacturing capacity to 3 GW by 2024.

In its announcement, the company cited the Inflation Reduction Act of 2022 which created incentives for companies to produce solar wafers and solar modules in the United States. Solar wafer manufacturer will receive $12 per square meter of each solar wafer it produces.

“I am very grateful to see the bill passed,” as it will boost U.S. manufacturing and create jobs, said Xiaofeng Denton Peng, chairman and CEO of SPI Energy. 

The renewable energy company and provider of solar storage and electric vehicle (EV) solutions was founded in 2006 in Roseville, California and is headquartered in McClellan Park, California.

The company operates across three divisions: SolarJuice solar wholesale distribution, residential solar and roofing installation, and solar module manufacturing, the SPI Solar and Orange Power commercial & utility solar division, and the EdisonFuture/Phoenix Motor EV division. 

SolarJuice offers renewable energy systems for residential and small commercial markets and has operations in the Asia Pacific and North America markets. The commercial and utility solar division provides EPC services to third-party project developers, and develops, owns and operates solar projects. Phoenix Motor produces medium-duty commercial electric vehicles, and is developing EV chargers, electric pickup trucks, electric forklifts, and other EV products.

SPI has global operations in North America, Australia, Asia and Europe and is also targeting investment opportunities in battery storage, charging stations, and other EVs.