Written by Wu Mingzhe

Meyer Burger Technology AG, a leading industrial manufacturer of solar cells and modules, has exciting news for the renewable energy industry. The company has announced its plans to open a state-of-the-art solar cell manufacturing facility in Colorado Springs, Colorado. With an initial production capacity of 2 GW of solar cells per year, this new plant will play a crucial role in supplying Meyer Burger’s solar module production in Goodyear, Arizona, thus supporting the growing North American market.

To establish its solar manufacturing facility, Meyer Burger will convert a former semiconductor fabrication plant, which will be leased on a long-term basis. The production is expected to kickstart in the fourth quarter of 2024, marking a significant milestone for the company as it looks to create over 350 direct jobs. The decision to open this facility was further reinforced by the support received from the State of Colorado and the City of Colorado Springs, who have rallied behind the project, providing a comprehensive financial package and various incentives to ensure its success.

By expanding its strategy to include “Made in USA” solar cells, Meyer Burger is strategically responding to the evolving market requirements influenced by new regulations in the United States. The recent guidelines announced by the U.S. Treasury Department emphasize the qualification of domestic content, allowing for an additional 10% investment tax credit (ITC) for U.S. solar projects. With this move, Meyer Burger is confident that domestically manufactured solar cells will offer greater value to its customers in terms of high-performance solar products and additional tax credits.

Gunter Erfurt, CEO of Meyer Burger, stated, “Meyer Burger strongly believes that domestically manufactured solar cells will bring additional value to our customers, both in relation to using best-in-class high-performance solar products ‘Made in USA’ and in terms of qualifying for additional tax credits.”

With a projected initial production of 2 GW of solar cells and modules in the U.S., Meyer Burger stands to gain tax credits of up to $1.4 billion from the commencement of production in 2024 until 2032. Furthermore, in recognition of Meyer Burger’s decision to establish their solar cell facility in the U.S., the City of Colorado Springs and the State of Colorado have demonstrated their support by offering approximately $90 million in the form of tax credits, direct assistance, and discounted rates for electricity and water. Additionally, financing for the company’s growth in the U.S. is expected to be supplemented by prepayments from module offtake partners and a loan valued at over $300 million from the U.S. Department of Energy (DoE).

The accelerated production schedule in the U.S. has been made possible through the redirection of production equipment initially intended for the previously announced 2 GW solar cell expansion at the Thalheim site in Bitterfeld-Wolfen, Germany. This equipment will now be installed at the Colorado Springs facility, enabling the completion of the cell factory by 2024 as planned.

Meyer Burger’s decision to bring solar cell production to Colorado exemplifies its commitment to sustainability, innovation, and customer satisfaction. By embracing domestic manufacturing, Meyer Burger is not only supporting the North American solar market but also contributing to the growth of the renewable energy sector in the United States.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.