Key Takeaways
- Microsoft has announced a 12GW solar panel deal with South Korean firm Qcells.
- Microsoft’s deal powers the equivalent of 1.8 million homes and will speed the company’s 100% renewable energy goal.
- Qcells is seeking to compete with China as a U.S. supplier, and the Microsoft deal will drive demand for the company’s $2.5 billion plant in Georgia.
Microsoft (MSFT)’s latest bet on solar energy is a long-term partnership with South Korean firm Qcells, reiterating its commitment of moving towards renewable energy. Qcells will supply Microsoft with 12 gigawatts (GW) of American-made solar panels through 2032.
Why Is Microsoft Leaning On Solar Panels?
Microsoft is said to be looking for a solar panel provider to reduce supply chain risks. The deal will help the company to achieve its goal of using renewable energy to fully power all its operations by 2025.
Microsoft first partnered with Qcells a year ago on a 2.5GW project, and the latest agreement is the largest of its kind for the engineering, procurement, and construction firm. A company statement said that the latest solar provision is the equivalent of powering more than 1.8 million homes annually.
What’s In It For QCells?
The partnership also solidifies demand for products at Qcells’ new $2.5 billion factory in Cartersville, Georgia.
Qcells, a subsidiary of South Korean conglomerate Hanwha Solutions Corp., is seeking to create a U.S.-focused supply chain that can rival China. President Biden’s Inflation Reduction Act of 2022 was designed to reduce reliance on overseas supply chains, and China has around 80% market share in solar panels.
“Our expanded agreement with Qcells is designed to drive large-scale domestic production of solar modules essential to advancing a resilient U.S. supply chain and clean energy economy,” Bobby Hollis, VP for Energy at Microsoft said in a press release Monday.