Overview
The Inflation Reduction Act of 2022 enhances residential solar initiatives by offering an additional 10% ITC when U.S.-manufactured materials are used. The updated IRS guidelines simplify the qualification process, particularly for inverters, racking, and storage systems.
Skylight Lending provides certified installers with the option to participate in Domestic Content (ITC-DC). This participation is voluntary and requires meeting certain conditions (detailed below) to be eligible for domestic content benefits.
To qualify for domestic content pricing, the equipment chosen for installation must meet a minimum 40% domestic content value.
Advanced Preview: Domestic Content Available on an "Opt-In" Basis
How to Opt In:
Authorized installer personnel (owner or designated executive) can submit a request through the support chat in the Skylight Lending portal.
Expectations:
Installers must be in good standing with Skylight Lending, including meeting installation approval rates and compliance standards.
Skylight Lending will process requests in the order they are received, which may take a few days. Partners should check their ticket for status updates.
To ensure fairness, Skylight Lending support cannot prioritize or expedite opt-in requests.
All sales will adhere to standard Fulfillment of NTP Criteria.
Once an organization has opted into ITC-DC, the quoting tool will display distinct domestic content pricing when generating a quote. After the quote is created for a project, it will appear in the quoting tab as shown below:
The "DC Boost" will indicate the pricing for a project that includes ITC-DC equipment and meets the 40% domestic content value threshold.
The quote will also show the "Non-DC price," which is the pricing the project will revert to if the installer chooses not to pursue ITC-DC for the project.
Equipment Eligible for Domestic Content
The equipment that qualifies for domestic content eligibility is listed below (and is also featured on our standard AVL). To qualify for domestic content pricing, the equipment used in the installation must meet the 40% domestic content value threshold.
Enphase Combination(s)
| Combination |
Enphase A |
Enphase B |
|---|---|---|
|
Inverter |
IQ8HC-72-M-US |
IQ8HC-72-M-DOM-US |
|
Optimizer |
N/A |
N/A |
|
Racking |
Unirac, IronRidge, K2, SnapNRack (DC Rail + Fasteners) |
Unirac, IronRidge, K2, SnapNRack (DC Rail or Fasteners) |
|
Module |
Any on AVL |
Any on AVL
|
|
DC% |
43.4% |
44.2% |
________________________________________________________________________________________________________________
SolarEdge Combination(s)
| Combination |
Enphase A |
|---|---|
|
Inverter |
USE3800H-USMNBL75 USE5700H-USMNBL75 USE7600H-USMNBL75 USE10000H-USMNBL75 USE11400H-USMNBL75 |
|
Optimizer |
U650 |
|
Racking |
Unirac, IronRidge, K2, SnapNRack (DC Rail or Fasteners) |
|
Module |
Any on AVL |
|
DC% |
44.2% |
ITC-DC Certification
The organization's "opt-in" for Domestic Content applies to all projects. However, an EPC will confirm at the Install Milestone submission (on an individual account level) whether domestic content was used.
Organizations will need to complete a Price Attestation at M1 submission, where they must specify if the installation is ITC-DC.
- If ITC-DC was used = The installation will be reviewed for ITC-DC compliance.
- If ITC-DC was not used = The installation will be reviewed as a standard project, and pricing will revert to the standard "Non-DC price."
M2 Requirements for ITC-DC
In addition to the standard M2 Submission Package and required photosets at the M1 Installation Milestone, organizations must provide extra documentation to verify that a submitted installation qualifies for Domestic Content pricing and benefits.
For more details and sample examples of these requirements and deliverables, please refer to our resource guide below:
|
Is Domestic Content Required? |
No, participation in the program is voluntary. |
|
Can our organization participate in Domestic Content if we’re enabled with GreenTech Direct Pay? |
Yes |
|
How do I opt in? |
Please see our advanced preview for how to opt in Section B "How to opt-in" |
|
I’m opted in, but my team uses an external sales portal. How can I view ITC-DC values? |
External sales portals, like Solo, will show the ITC-DC values (higher values). Both ITC-DC and standard values are available in the Skylight Lending portal for easy reference. |
|
How can I determine if my project qualifies for Domestic Content? |
The Skylight Lending Domestic Content Eligible Equipment list (outlined above in Section C) is the main resource to verify if a specific set of parts qualifies for Domestic Content pricing. If you need access to the Skylight Lending Domestic Content calculator, an additional tool to help assess if selected equipment combinations are eligible for ITC-DC pricing, please reach out to your Skylight Lending relationship manager. |
|
Will Domestic Content projects be subject to conditional approvals? |
Domestic Content projects will not receive conditional approval at the time of installation. Partners must either provide adequate proof or "opt out" of Domestic Content for the project to move forward. |
|
What percentage must be met for a project to qualify for ITC-DC? |
Currently, a 40% domestic content value threshold must be met, but installers should be aware that this requirement may change. |
|
Will selecting storage provide an extra boost to ITC-DC pricing? |
This will be a future feature of the Skylight Lending Domestic Content program, but it is not yet available. |
|
Can racking include components from multiple manufacturers? |
No, mixed mounts will not be permitted. All racking components on a single site must come from the same manufacturer. |