Mitsubishi Commits $3.9 Billion to Expand Solar Operations in the U.S.

Mitsubishi Corp. $8058.T plans to invest $3.9 billion in the U.S. renewable energy sector through its subsidiary Nexamp Inc., aiming to significantly expand its solar power footprint. According to Nikkei, the capital injection is expected to boost Nexamp’s capacity from 1.1 million kilowatts (kW) to 2.9 million kW by 2028. The development aligns with ongoing shifts in energy policy and supply chain localization in the U.S., particularly in response to trade restrictions and new incentives for domestic production.

Shift to U.S.-Made Solar Components

As part of the expansion, Nexamp will begin sourcing photovoltaic panels from American manufacturers like Silfab Solar Inc., replacing modules previously imported from Southeast Asia. This move allows the company to comply with tariff structures and qualify for federal incentives under the Inflation Reduction Act. The choice to localize hardware production also supports broader goals related to supply chain resilience and cost stability amid geopolitical tensions.

Strategic Goals Behind the Investment

The $3.9 billion allocation will support a variety of initiatives designed to enhance Nexamp’s market position:

• Expansion of solar capacity to 2.9 million kW over three years;

• Transition to U.S.-produced solar modules;

• Broader deployment of distributed solar projects across several states;

• Strengthened compliance with clean energy policy incentives;

• Improved access to IRA-linked subsidies through localized sourcing.

This investment reflects Mitsubishi’s intention to scale Nexamp as a key player in America’s decarbonization efforts.

Mitsubishi’s U.S. Presence via Nexamp

Diamond Generating Corp., a U.S.-based energy subsidiary of Mitsubishi, acquired a majority interest in Nexamp in 2018. Since then, the company has developed community solar initiatives focused on expanding access to clean power for households and small businesses. The renewed commitment highlights Mitsubishi’s long-term strategy to capture growth in clean infrastructure through its established North American platforms.

Market Dynamics and Policy Context

This development comes amid broader structural changes in the global solar industry. Tariff pressures and shifting policy incentives are prompting companies to localize production and redirect capital toward U.S. manufacturing. The timing also coincides with rising institutional interest in energy transition assets, which are now supported by federal tax credits, streamlined permitting, and demand for grid modernization.