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FEOC Rules—Multiple areas of potential risk:
- Ownership provisions
- Material assistance cost ratio
- Effective control provisions.
Conduct company due diligence / determine if prohibited foreign entity FEOC Audits—Essential for due diligence:
- Review of ownership structure
- Review of entity lists
- Review of bylaws, debt holdings.
Material assistance cost ratio (MACR): trace the product and the costs. Traceability Audits—Validate your supply chain:
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Audit factory traceability systems
- Verify the robustness of the proof that stated components (MPC) used for MACR calculations are converted into ordered products (MP).
Effective control Review Contracts
What Every U.S. Solar Buyer Should Know:
Foreign Entity of Concern (FEOC) requirements are taking effect at a time when projects are already impacted by start-of-construction rules, permitting delays, and other policy constraints.
Unlike AD/CVD or UFLPA, FEOC is not about the country of origin alone. It looks at ownership, financing, IP, contracts, and long-term payments. Much of this risk is not visible from public information.
Treasury guidance is still incomplete, but procurement decisions cannot wait for full clarity.
The downside is real. Non-compliance can mean losing Investment Tax Credit (ITC) or Production Tax Credit (PTC) eligibility, with claw-back exposure years after COD.
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Suppliers that appear compliant today may not be compliant; other suppliers may become compliant as ownership, input, or agreements change.
- Buyers are being forced to choose between familiar suppliers who may have FEOC risk, newer suppliers with limited track records, and higher priced FEOC compliant supply.
For more details on whether your supplier is FECO compliant, please contact one of Unicorn Solar’s teams, Robert, Sarahy, Jayde, George, or Karlita for more information.
Edited by Robert Benedict
Unicorn Solar is watching, studying, and working with companies innovating within the solar and decarbonization space.
If you have any questions or would like to work with a team of professionals who can help you achieve your success, please don't hesitate to contact Robert, Karlita, or Jayde for more information. Also, if you have supply-related questions, please don't hesitate to contact Sarahy. For BESS, inverter, and transformer questions, please reach out to George.
Even in the coldest months, all you need is sun and the right equipment to capture the energy from the sun and turn it into electricity.
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