Tunnel oxide passivated contact (TOPCon) solar cells are often highlighted as the industry’s next step forward. With incremental efficiency gains and growing global interest, many manufacturers have announced plans to retool and scale up production.
However, the U.S. market faces a harsh reality: We cannot produce TOPCon cells at meaningful volumes in time to meet demand.
Patent Roadblocks
The first barrier is intellectual property. Key TOPCon processes, from doped polysilicon passivation layers to rear-contact architectures, are protected by active patents. Much of this IP resides with foreign entities, complicating the ability of U.S. firms to scale production without incurring costly licensing fees or the looming risk of litigation.
For developers and financiers, that risk is unacceptable. A project that depends on contested IP could be vulnerable to lawsuits or import restrictions years after installation. In a market where margins are already thin and financing terms are tightening, legal uncertainty is a deal breaker.
RE+ 2025 Takeaway: Demand Is Now
At RE+ this year, the conversations across developer, EPC and investor circles all centered on urgency. The focus is not on what technology might be ready five years down the line — it’s on what can ship today, qualify for domestic content and be delivered at scale.
That reality favors passivated emitter and rear cell (PERC) technology. With a decade of proven reliability, a mature supply chain and straightforward manufacturing requirements, PERC remains the only viable cell technology that U.S. manufacturers can scale quickly and confidently.
Domestic Content and FEOC Compliance
The Inflation Reduction Act’s domestic content adder and the looming Foreign Entity of Concern (FEOC) restrictions raise the stakes. Developers must be certain that the technology inside their modules is both compliant and bankable. PERC’s IP landscape is clear, its process equipment is widely available and its track record is field-proven. By contrast, TOPCon offers none of that assurance.
A Reality Check
This isn’t to say TOPCon won’t play a role in the future. But the gap between hype and U.S. manufacturing reality is wide — and in the near term, it cannot be bridged.
If the industry is serious about meeting the surge in demand, hitting domestic content thresholds and complying with FEOC restrictions in 2026, then PERC is the technology we can count on. Betting on TOPCon today is less about building projects and more about taking unnecessary risks.
For manufacturers, developers and investors alike, the smart move is to ground decisions in what can be delivered at scale now. And right now, that’s PERC.
