FH Capital Acquires 75% Majority Stake in JinkoSolar's US Manufacturing Arm to Navigate FEOC Rules and Double Solar Capacity to 4 GW
Private equity firm FH Capital has entered a definitive agreement to acquire a 75.1% majority stake in Jinko Solar (U.S.) Industries Inc., with JinkoSolar retaining a 24.9% minority interest. The transaction covers a 2 GW (gigawatt) solar module manufacturing facility and a growing BESS (battery energy storage system) business, with FH Capital committing expansion capital to double module capacity to at least 4 GW and launch domestic BESS production post-close. The deal's driving logic is regulatory: under FEOC (Foreign Entity of Concern) rules — US provisions that restrict manufacturers with certain foreign ownership from qualifying for manufacturing tax credits — a shift to majority US ownership may allow the facility to capture the full 45X manufacturing tax credit and the domestic content bonus, which requires an increasing percentage of US-sourced components through 2027. JinkoSolar's seven-year US manufacturing track record provides an operational foundation for the restructured entity. Latham & Watkins is serving as legal counsel to FH Capital. Morgan Stanley Asia Limited is acting as financial adviser to JinkoSolar. FH Capital is led by Managing Partner Sanjeev Chaurasia, who previously headed global solar investment banking at Credit Suisse and led JinkoSolar's US IPO in 2010. The transaction is subject to customary closing conditions and regulatory approvals. Financial terms were not disclosed. The deal sits within a broader US solar manufacturing boom — US module capacity reached 72 GW earlier in 2026 — as the industry pivots from capacity-building toward vertical integration and domestic BESS manufacturing to serve the solar-plus-storage market.
Why this matters
This transaction is a textbook example of regulatory-driven deal structuring: the ownership restructuring from Chinese-linked majority to US PE majority is not primarily a commercial optimisation but a response to the FEOC regulatory framework and 45X tax credit eligibility rules. Counsel on both sides must navigate the intersection of US foreign investment rules, manufacturing incentive legislation, and cross-border M&A structuring — a combination that is increasingly common in the clean energy sector as the IRA (Inflation Reduction Act) reshapes investment flows. The 'why now' trigger is the tightening domestic content bonus percentage requirements through 2027, which creates a closing deadline for manufacturers who want to capture the full credit stack. For London-practising lawyers, the story is a live example of how US regulatory incentive design is restructuring global clean energy supply chains in ways that generate cross-border M&A mandates.
On the Ground
A trainee on this matter would assist with coordinating regulatory filing submissions across jurisdictions and preparing due diligence summaries on the target's IP (intellectual property) portfolio and manufacturing licences. They would also help compile the technology transfer agreement review checklist and track grid connection and facility permit conditions as part of the overall CP schedule.
Interview prep
Soundbite
FEOC ownership rules are restructuring global solar supply chains — regulatory arbitrage is now the primary M&A driver in US clean energy.
Question you might get
“What regulatory approvals would this transaction require, and which aspects of the FEOC framework would you need to assess most carefully in your due diligence?”
Full answer
FH Capital is acquiring a 75.1% stake in JinkoSolar's US manufacturing arm, with Latham & Watkins advising the buyer, primarily to reposition the facility as US-majority-owned and qualify for the 45X manufacturing tax credit under the IRA. This matters because it shows how US energy tax policy is directly reshaping corporate ownership structures — the deal's rationale is regulatory optimisation rather than traditional industrial strategy. The wider trend is the accelerating vertical integration of US solar and BESS manufacturing as developers seek domestic content compliance ahead of the 2027 deadline. I think this type of regulatory-driven restructuring will generate a sustained pipeline of cross-border energy M&A mandates, particularly for firms with both US and international clean energy practices.
My notes
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