Europe’s only solar cell manufacturer is turning its back on Germany

It should have been the comeback for the so-called Solar Valley in Saxony-Anhalt. Meyer Burger, the only major solar cell manufacturer in Europe, announced at the end of April 2023 that it would increase its production tenfold in Thalheim, Saxony-Anhalt.

From 2027, solar cells with an output of up to 15 gigawatts should be manufactured here every year. However, only if Germany and the EU properly subsidize the expansion of production. Meyer Burger expected start-up financing of several hundred million euros.

Otherwise, company boss Gunter Erfurt threatened at the end of June that one would consider “terminating the projects for the further expansion of solar production in Germany”. According to Erfurt, the red carpet is being rolled out for his company in the USA.

The basis for flirting with US business is US President Joe Biden’s Inflation Reduction Act, a multi-billion dollar subsidy program. This has now evidently shown its effect.

Because Meyer Burger carries out his threat and announces the construction of a plant for high-performance solar cells in Colorado Springs in the US state of Colorado. Initially, solar cells with an output of two gigawatts are to be produced per year, which Meyer Burger will deliver to its plant in Goodyear, Arizona, where solar modules will be produced.

The start of production is planned for the end of 2024. The fact that it goes so quickly is also due to the fact that production machines, which were actually intended to build up capacities in Saxony-Anhalt, are being diverted to Colorado, like Meyer Burger communicates.

In the message, Meyer Burger also lists the financial support it is looking forward to. There is a financial package from the city of Colorado Springs and the state of Colorado worth almost $90 million. The money will come in the form of tax credits, direct support and discounted electricity and water tariffs.

In addition, the Swiss company anticipates more than $300 million in advance payments from module buyers and a loan from the US Department of Energy. No wonder Meyer Burger wants to continue to get involved in the USA.

“Meyer Burger is currently working on further multi-gigawatt purchase agreements in the USA with new customers. We are already examining possibilities to build up additional production capacities for solar cells and modules in the USA,” says company boss Erfurt.

According to the company, the company can expect a total of up to $1.4 billion in tax credits between 2024 and 2032.

The expansion in Thalheim seems to have been put on hold for the time being, but not completely stopped. The communication states that “as part of Meyer Burger’s successful application for the EU Innovation Fund […] an expansion in the multi-gigawatt range is planned in Thalheim at a later date”.

In any case, the company wants to further expand solar energy “both in the USA and in Germany and Europe”, according to Erfurt.