N.M. solar company struggles highlight Inflation Reduction Act issues

Maxeon, a Singapore-based solar energy company, is facing significant financial difficulties despite receiving substantial support from federal, state, and local governments. The company announced plans in August 2023 to establish a 3-gigawatt solar panel manufacturing facility in Albuquerque, New Mexico, which was expected to create 1,800 jobs. However, recent financial reports indicate that construction will not begin until late 2023, with production delayed until 2026. This uncertainty raises concerns about the company's ability to fulfill its commitments. The financial struggles of Maxeon have drawn comparisons to the failed solar company Solyndra, which went bankrupt after receiving a large government loan. Critics argue that the Inflation Reduction Act, intended to boost American manufacturing, inadvertently allows foreign companies like Maxeon to benefit from taxpayer-funded incentives. This situation has sparked debate about the effectiveness of the Act and its implications for domestic industries. Maxeon's largest shareholder, TCL Zhonghuan, a Chinese company, is investing $200 million, which will grant it majority control over Maxeon. This development has led to questions about whether U.S. taxpayer dollars are being used to support a foreign entity, particularly as the oil and gas industry in New Mexico faces increased regulations despite its significant contributions to the state’s economy. The New Mexico government has provided an extensive incentive package to attract Maxeon, including tax rebates and industrial revenue bonds. However, as the company struggles financially, the long-term viability of such investments is being scrutinized, raising concerns about the future of clean energy manufacturing in the state.