- Meyer Burger says it will raise gross proceeds through rights offering for CHF 250 million
- Proceeds will be used to expand its solar cell and module production capacity to approximately 3 GW annually
- The move follows its DESRI order for up to 5 GW module supply which marks its entry into utility scale segment
Switzerland headquartered solar cell and module maker Meyer Burger plans to raise up to CHF 250 million gross proceeds through rights offering to expand its annual manufacturing capacity for solar cells and modules to approximately 3 GW.
The accelerated expansion plan comes after the company landed a 3.75 GW to 5.0 GW module order from US renewable energy developer DE Shaw Renewable Investments (DESRI) for utility scale projects, to be delivered within 5 years starting from 2024. This, it explains, was secured at a fixed base price with an adjustment for wafer prices (see 3.75 GW DESRI Order For Meyer Burger In US). At the time, it had already mentioned plans for a potential capital increase of CHF 250 million.
It plans the expansion at its Thalheim site in Germany where it produces solar cells to be utilized for its Goodyear, Arizona fab in the US out of which around 1 GW will serve the DESRI order, while the remaining volume will be for US residential and small commercial and industrial (C&I) projects.
For the cell fab expansion, it has entered into a long-term lease for an additional building with over 40,000 sq. mtr. space adjacent to the Thalheim fab. The buildings were originally from former QCells’s thin-film solar subsidiary Solibro. The Goodyear fab is expected to enter commercial operations around mid-2024.
Meyer Burger’s European module facility in Freiberg, Germany with 1.4 GW capacity will serve the European residential and small C&I market segment. The 1st module line here with around 400 MW capacity is running at full capacity. Ramp-up of the 2nd line to achieve an annual total of 1 GW started in September 2022, which, when completed, will take the total annual Freiberg capacity to 1.4 GW.
“The relationship with DESRI allows Meyer Burger to accelerate its entry into the utility-scale segment and to fast-track the recognition of Meyer Burger modules to be used in large-scale utility installations,” stated the company. “Furthermore, the company has established its ability to command a material price premium over current standard pricing not only in the residential, but also the utility-scale segment, (e.g., DESRI).”
Meyer Burger’s management expects to be eligible for tax credits in the US under the Inflation Reduction Act (IRA) which will enable it to reduce production cost for modules manufactured in the US. The IRA offers 7 cents/W in tax credits for solar modules made in USA (see Inflation Reduction Act Now A Law).