New Swiss solar cell production in the USA
Meyer Burger announces the opening of a high-performance solar cell plant in Colorado Springs. With an initial capacity of two gigawatts of solar cells per year, the new plant will exclusively supply Meyer Burger's solar module production in Goodyear for the North American market. To start production as soon as possible, the company has secured a former semiconductor factory as a location and concluded a long-term lease agreement at regional market conditions. Production is scheduled to start in the fourth quarter of 2024. More than 350 direct jobs will be created. The investment is supported by a tax credit under the Inflation Reduction Act and related measures, as well as by the support of the US state of Colorado and the city of Colorado Springs.
By expanding its business strategy to include solar cells “Made in USA”, Meyer Burger is responding to market requirements resulting from new regulations in the United States: Recently, the US Treasury Department announced guidelines for qualifying “domestic content”. These allow for an additional ten percent bonus on the Investment Tax Credit (ITC) for US solar projects. “Meyer Burger strongly believes that domestically manufactured solar cells bring additional benefits to our customers, both in terms of using premium high performance ‘Made in USA’ solar products and qualifying for additional tax credits,” says Gunter Erfurt, CEO of Meyer Burger. With an initial production volume of two gigawatts of solar cells and modules annually in the US, Meyer Burger has the opportunity to receive tax credits of up to USD 1.4 billion from the start of production in 2024 until the end of 2032.
As part of the decision to locate the solar cell plant in the USA, the company will receive another substantial financial package in addition to the IRA tax incentives: The city of Colorado Springs and the US state of Colorado are supporting the investment with almost USD 90 million, mainly in the form of tax credits, direct support and discounted electricity and water rates. In addition, upfront payments from module purchasers and a loan from the US Department of Energy (DoE) totalling more than USD 300 million are foreseeable. These are expected to help finance Meyer Burger’s growth in the United States.
“Our presence in the US will allow us to reach existing and future customers faster. I would like to sincerely thank our partners in the Biden administration and in Colorado as well as our off-take partners DESRI, Ingka and BayWa for their support in expanding our US activities,” says Gunter Erfurt. He adds: “Meyer Burger is currently working on further multi-gigawatt offtake contracts in the US with new customers. We are already exploring opportunities to build further production capacity for solar cells and modules in the US”.
The accelerated production schedule in the US is made possible by rerouting production machinery originally intended for the previously announced expansion of the solar cell factory at the Thalheim site in Bitterfeld-Wolfen, Germany. This equipment will now be installed at the Colorado Springs site in order to meet the planned completion date of the cell factory in 2024.
As part of Meyer Burger’s successful application for the EU Innovation Fund, a multi-gigawatt expansion in Thalheim is planned at a later date. A prerequisite for such investments are favourable market conditions and secure, fair competitive conditions for European solar manufacturers in the EU.
“Meyer Burger is a driving force for the expansion of solar energy in the US as well as in Germany and Europe,” says Erfurt. “We are pleased to lay the foundation for a transatlantic solar energy partnership and to continue to expand our production in Germany and the European Union.” In Germany, the company will therefore participate in the German government’s recently announced expression of interest in a PV industry renaissance.