In a year marked by both optimism and uncertainty for the solar sector, U.S. solar manufacturing and global floating solar initiatives are powering ahead, fueled by major investments, policy shifts, and a growing appetite for clean energy. From the heart of Texas to the waterways of Southeast Asia, the solar industry is showcasing its resilience and adaptability—despite formidable competition from China and shifting political winds at home.
On September 1, 2025, T1 Energy of Texas announced a groundbreaking partnership with Corning Inc. of New York, aiming to build a nearly all-American solar supply chain. According to Inside Climate News, this move positions T1, formerly known as Freyr Battery, at the forefront of a new wave of domestic solar manufacturing. The company plans to construct a solar cell manufacturing plant in Rockdale, Texas, about 60 miles northeast of Austin, with an impressive capacity of 5 gigawatts. Corning will supply polysilicon processed at its Michigan facility, starting in the second half of 2026. The finished solar cells will then travel to T1’s Dallas plant for final assembly into solar panels, creating a seamless, U.S.-based supply chain.
The partnership is expected to support about 5,800 new jobs, a significant boost for the local and national economy. Daniel Barcelo, T1’s chairman and CEO, stated, “This landmark supply chain agreement with Corning will help invigorate America with scalable, reliable, low-cost energy. This is American companies building in America and protecting American energy security. The U.S. needs to establish critical energy supply chains built on domestic capacity and industrial know-how.”
T1’s emergence is part of a broader trend of companies seeking to meet the surging demand for solar power while navigating a complex landscape of tax credits and tariffs. President Donald Trump’s One Big Beautiful Bill Act, signed in July 2025, maintained a 2030 phaseout for manufacturing tax credits, bucking a trend of rapid clean energy credit reductions. However, the bill also introduced restrictions on using components from “prohibited foreign entities,” a move widely interpreted as targeting China. The Trump administration has yet to release detailed guidance on how these rules will be enforced, leaving some uncertainty for projects reliant on these manufacturing credits.
This uncertainty hasn’t slowed the momentum of solar manufacturing in Texas. The state currently boasts 18 solar component facilities online—more than any other state—and, if all announced projects proceed, could lead the nation with 26 facilities in the near future, according to a May report from the American Clean Power Association. Canadian Solar, for example, completed a module manufacturing facility in Mesquite, Texas, in 2024, with a 5 gigawatt production capacity. The project drew rare bipartisan praise, with Texas Governor Greg Abbott and U.S. Senator Ted Cruz both offering support. Cruz remarked, “Texas is an energy production powerhouse, and we embrace an all-of-the-above energy strategy.”
Despite these gains, the U.S. faces significant challenges in competing with China, which dominates global solar panel production. According to BloombergNEF, the six largest solar panel manufacturers are based in China, with First Solar of Tempe, Arizona, ranking eighth worldwide. Antoine Vagneur-Jones, head of trade and supply chains for BloombergNEF, told Inside Climate News, “People are being rightly skeptical, given that this is something that’s quite new in the U.S.” He likened the final assembly of solar panels to putting together Ikea furniture, underscoring the complexity and coordination required to build a robust domestic supply chain.
First Solar, a major U.S. manufacturer, expects its U.S. factories to reach a combined capacity of 14 gigawatts of solar panels per year by the end of 2026, with operations spanning three plants in Ohio, one in Alabama, and a new facility about to open in Louisiana. Hanwha Qcells, a South Korean company with a growing presence in Dalton, Georgia, is also expanding, reflecting the sector’s confidence in U.S. manufacturing potential.
While Texas and other states race to build out land-based solar infrastructure, the next frontier may lie on water. AquaVolt Solutions (AVS), one of the world’s fastest-growing players in floating solar technology, has announced an audacious goal: to secure $600 million in solar contracts by the end of 2027—a sixfold increase from its current $100 million project portfolio. As reported by Insights News Wire, AVS has already delivered or committed to over 2,200 megawatts of floating solar capacity globally, with projects spanning Southeast Asia, Africa, and the Middle East.
AVS’s strategy focuses on floating solar infrastructure for large-scale reservoirs, coastal marine sites, and hybrid projects, often in partnership with government agencies, water authorities, and ESG-conscious enterprises. “We are entering the golden era of renewable energy,” said Rashid bin Saeed, Founder and CEO of AquaVolt Solutions. “Our $600 million target is ambitious—but the world’s momentum toward clean, decentralized, and land-efficient energy systems is undeniable. Floating solar is no longer a niche—it’s becoming central to future energy strategies.”
The company’s growth aligns with a global surge in clean energy investment, which the International Energy Agency projects will exceed $2 trillion annually by 2030. Floating solar, once viewed as experimental, is now gaining mainstream recognition, thanks to endorsements from institutions such as the World Bank, the Asian Development Bank, and the International Renewable Energy Agency (IRENA). These organizations have highlighted floating solar’s unique advantages for countries facing land scarcity and high power demand.
AVS’s long-term vision goes beyond financial growth. The company emphasizes climate impact, regional empowerment, and sustainability innovation. “We’re not chasing growth for its own sake,” Rashid stressed. “We’re building clean power infrastructure that delivers measurable environmental and economic benefits for the communities we serve.” Founded in 2016, AVS specializes in floating solar and carbon-integrated solar systems, delivering scalable, efficient, and environmentally integrated solutions for utilities, governments, and ESG-driven corporations worldwide.
As the solar industry continues to evolve, both on land and water, the race to build resilient, domestic supply chains and innovative solutions is intensifying. U.S. manufacturers like T1 Energy and First Solar are determined to close the gap with China, while global innovators like AVS are redefining what’s possible with floating solar. For policymakers, investors, and everyday consumers, the message is clear: solar energy’s future is bright, diverse, and increasingly homegrown.
With new partnerships, ambitious targets, and a relentless drive for innovation, the solar sector is proving that, despite obstacles, it remains a force to be reckoned with—lighting the way for a cleaner, more secure energy future.
