ARRAY Technologies' 100% Domestic Content Solar Trackers and the Strategic Implications for Renewable Energy Tax Incentive Capture

The U.S. clean energy transition is accelerating, but its success hinges on more than technological innovation—it requires a reimagining of supply chains and a recalibration of economic incentives. At the forefront of this transformation is ARRAY Technologies, a company whose recent 100% domestic content solar tracker deployment for the Emerald Green Solar project in Indiana exemplifies how reshoring and tax credit optimization can redefine competitive advantage in the renewable energy sector. For investors, this project is not merely a technical achievement but a strategic validation of ARRAY's ability to navigate—and profit from—the evolving landscape of U.S. energy policy.

The Tax Credit Imperative: Domestic Content as a Strategic Lever

The Inflation Reduction Act (IRA) has rewritten the rules for clean energy investment, with domestic content requirements now central to tax credit eligibility. Under the U.S. Treasury's Notice 2025-08, projects using 100% domestically manufactured components qualify for the maximum 28.7% Assigned Cost Percentage (ACP), including a 9.4% production ACP for locally produced parts. ARRAY's Emerald Green Solar project, a 200 MWac facility in Indiana, leverages these incentives by sourcing locally rolled steel and torque tubes, with over 250 construction workers engaged in its development. This is not accidental but a calculated strategy to align with federal guidelines, ensuring maximum tax credit capture while creating localized economic value.

The implications are profound. As the IRA's domestic content thresholds tighten—rising from 40% foreign assistance limits for 2026 to 60% by 2030—companies unable to localize production risk exclusion from lucrative tax credits. ARRAY's third-party compliance audit and new manufacturing facility in Albuquerque, New Mexico, which began operations in April 2024, underscore its commitment to meeting these requirements. By producing 100% domestic content trackers, ARRAY not only secures the highest ACP but also insulates itself from the compliance risks and penalties that plague competitors reliant on international supply chains.

Competitive Differentiation in a Shifting Market

The U.S. solar tracker market is highly consolidated, with Nextracker dominating 74.47% of the market share in Q1 2025, while ARRAY holds 25.53%. Yet, market share alone does not tell the full story. The IRA's amendments have created a “reshoring premium,” favoring firms that can localize production. ARRAY's 100% domestic content strategy positions it as a critical player in this new paradigm.

Consider the competitive landscape:
- Domestic Content Thresholds: Projects starting construction in 2026 must limit foreign assistance to 40% of total costs. ARRAY's fully domestic trackers eliminate this risk, while competitors with international dependencies face declining eligibility.
- 45X Manufacturing Tax Credits: ARRAY's Q3 2024 gross margin surged to 35.4% from 26% in Q3 2023, driven by 45X credits for producing torque tubes and structural fasteners domestically. This financial tailwind is unmatched by rivals still reliant on imported components.
- Supply Chain Resilience: By securing supply agreements with U.S. steel producers and automating production, ARRAY mitigates bottlenecks that have plagued the industry. Its new Albuquerque facility, expected to deliver trackers by Q3 2025, further cements this resilience.

The Indiana Project: A Blueprint for Scalability

The Emerald Green Solar project is more than a single contract—it is a proof of concept for ARRAY's broader strategy. By demonstrating the feasibility of 100% domestic content trackers, the company has validated its supply chain's ability to meet federal standards while creating jobs and economic value in communities like Indiana. This scalability is critical: ARRAY's orderbook includes $2 billion in domestic content-focused projects, with over 20% of its global orderbook already allocated to its OmniTrack product.

Moreover, the project aligns with broader policy goals. As Kevin Hostetler, ARRAY's CEO, notes, the company's 35-year legacy as an American manufacturer supports a vision of reshoring that transcends profit. By embedding itself in the U.S. clean energy ecosystem, ARRAY is not just capturing tax credits but also influencing the trajectory of the industry.

Investment Thesis: A Compelling Case for Resilience and Growth

For investors, ARRAY's strategic alignment with the IRA's incentives presents a compelling case. The company's ability to secure maximum ACPs, combined with its 45X tax credit gains and supply chain resilience, creates a durable competitive moat. While Nextracker's larger market share is undeniable, ARRAY's focus on domestic content and innovation—such as its high-angle stow hail tracker and advanced hail protection software—positions it to capture a growing share of the market as policy-driven demand intensifies.

The risks are not negligible. The IRA's evolving regulations and potential shifts in political priorities could introduce uncertainty. However, Hostetler's confidence in the durability of IRA tax credits—despite the Trump administration's executive orders—suggests a strong policy tailwind. Additionally, ARRAY's forward guidance for 2025, including projected revenue growth and a strengthening EBITDA outlook, reinforces its financial viability.

Conclusion: A Strategic Bet on the Future of Energy

ARRAY Technologies' 100% domestic content solar trackers are more than a product—they are a strategic response to the U.S. clean energy transition's most pressing challenges. By reshoring production, optimizing tax incentives, and demonstrating supply chain resilience, the company has positioned itself as a leader in a market where policy and profitability are increasingly intertwined. For investors seeking exposure to the renewable energy boom, ARRAY offers a rare combination of policy alignment, operational excellence, and scalable growth. In an era where the future of energy is being rewritten, this is a company that is not just adapting to the new rules but defining them.