XsunX Provides Update On Manufacturing Facility Plans

XsunX Inc., a solar technology company currently engaged in the build-out of its multi-megawatt thin-film photovoltaic solar manufacturing facilities in Oregon, has issued updates to its thin film solar module manufacturing plans, and its review of the investment tax credits related to provisions of the American Recovery and Reinvestment Act of 2009.

‘In January, the company began preparing modifications to its manufacturing plans that would require fewer manufacturing components and significantly less capital expenditures, with the objective of providing sufficient manufacturing capacities of approximately 10 MW to 13 MW necessary to service our existing sales contracts,’ states Tom Djokovich, CEO of XsunX. ‘Our plans include reducing budget requirements to approximately $13 million, which is roughly one-third of our current budget.

‘The majority of cost reductions can be attributed to the need for significantly fewer infrastructure improvements, initial staffing, equipment, and operations related to the cost of goods sold,’ he continues. ‘We believe that this will allow us to continue to add future manufacturing capacities as sales develop and allow the company to work within the limitations presented by the unanticipated volatility within the financial markets.’

The company is also reviewing the renewable energy manufacturing investment credit provisions of the American Recovery and Reinvestment Act of 2009, which provides up to $2.3 billion to fund a 30% investment tax credit (ITC) for manufacturing assets used to produce alternative energy products. The bill also offers provisions in which developers of manufacturing facilities can apply for grants of up to 30% of the total cost of eligible projects in lieu of the ITC.

SOURCE: XsunX Inc.

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