Soltec Secures PFE Compliance Certification for US Solar Trackers, Navigating Complex Tax Code Requirements
Spain-based solar tracker manufacturer Soltec has announced it can now provide certification confirming its domestically manufactured solar trackers meet the stringent requirements of Sections 45Y and 48E of the U.S. tax code. These provisions impose restrictions on the use of equipment manufactured by companies receiving material assistance from prohibited foreign entities (PFEs), a critical consideration for renewable energy projects seeking federal tax credits.
The certification encompasses Soltec’s U.S.-produced SFOne and SF7 series 1P and 2P trackers, along with key components such as torque tubes, structural fasteners, drive systems, dampers, actuators, controllers, and rails. The tax code and subsequent IRS guidance stipulate that 100% of structural steel components, including piles and rails, must be domestically produced. For other manufactured product components, such as torque tubes and drive systems, the requirement is at least 50% domestic material content for projects commencing construction in 2026, escalating to 55% in 2027.
Soltec has dedicated the past year to restructuring its U.S. supply chain to ensure its products align with these domestic content mandates. Following a comprehensive compliance review process, supported by tax and regulatory consultancy firm KPMG, the company is now equipped to issue PFE-compliant certifications for its relevant product lines.
“Our customers in the United States are already benefiting from a strong local supply chain that enables Soltec to offer tracker solutions with 100% U.S. content, fully aligned with PFE compliance requirements,” stated Soltec CEO Mariano Berges. He further elaborated that by localizing its U.S. supply chain, Soltec empowers customers to access “Made-in-USA” tax benefits while simultaneously enhancing cost competitiveness, delivery certainty, and resilience against tariffs, freight volatility, and broader geopolitical disruptions.
The looming deadlines associated with the solar tax credit provisions of the One Big Beautiful Bill Act (OBBBA) of 2025 are a significant factor for project developers. To qualify for these credits, projects must initiate construction before July 4, 2026, or be placed into service by December 31, 2027. Industry experts are advising companies to proactively address these requirements to avoid missing critical deadlines.
