'U.S. Democrats’ Win': Could Solar Tax Credits Be Revived? G&BS Eco Rebounds 10%

[Financial News] With Democrats taking majorities in the House and Senate in the U.S. midterm elections, the possibility of restoring tax credits for wind and solar power has come into focus. Shares of G&BS Eco, which supplied scrubbers for the solar cell production process at Hanwha Qcells’ Georgia plant, are also rebounding.
According to the Korea Exchange on the 5th, G&BS Eco closed at 5,460 won the previous trading day, up 515 won (10.41%) from the day before.
The development drawing attention in the United States is the Democrats’ push to restore tax credits. In next year’s Congress, Democrats are expected to make reviving the wind and solar investment and production tax credits (ITC and PTC), which Republicans repealed through a budget law, a priority in the clean energy sector. Their capture of control of Congress in the midterm elections could strengthen the case for related discussions, but uncertainty remains over whether the credits will actually be restored, given President Trump’s veto and negotiations over the legislation.
Whether cell production expands is directly relevant to G&BS Eco’s business. Solar cell manufacturing involves a deposition process that uses hazardous gases such as silane and ammonia, requiring scrubbers as treatment equipment. Demand for the equipment is more directly linked to the expansion of cell production lines than to module assembly.
The United States also plans to implement trade measures to grow its domestic solar supply chain. Starting December 4, it will apply a minimum import price of $0.22 per watt to solar cells and impose tariffs on related products.
In 2023, G&BS Eco signed a supply contract worth 4.5 billion won with Hanwha Qcells and delivered 1-GW-scale equipment to its Georgia plant. The company said its scrubbers are being used at Hanwha Qcells’ plants in Korea and abroad, and that it understands additional orders for the Georgia plant are also under discussion.
India is also changing its policies to increase cell production. Since June, India has required domestically made cells included on the Approved List (ALMM) to be used in government-supported projects and other programs. G&BS Eco does business with around 30 local solar companies, and the company estimates that it holds about 95% of India’s solar scrubber market. Second-quarter revenue rose 44% year over year to 36.7 billion won, while operating profit increased 117% to 5.1 billion won.
The South Korean government is also offering public-bidding incentives for modules made with domestic cells and pursuing the commercialization of tandem cells by 2028. Next year’s proposed renewable energy budget is 2.8 trillion won, more than double this year’s. Whether discussions on restoring U.S. tax credits and expanded cell production in various countries lead to actual investment and orders—and, in particular, whether Hanwha Qcells’ Georgia plant receives additional orders after December—is seen as a factor that could shape the stock’s future performance.
An Juwon, a research analyst at DS Investment & Securities Co., Ltd., forecast, “As the Democrats’ bargaining power increases, demands related to renewable energy, including solar and wind, are likely to be strongly reflected.”
[email protected] Bae Han-geul Reporter