Meyer Burger lands 5GW module supply agreement with DESRI as it cuts its H1 losses on last year  

Meyer Burger had recently cut its module production forecast, citing supply chain problems. Image: Meyer Burger.

Swiss heterojunction cell and module manufacturer Meyer Burger has landed a long-term supply agreement for up to 5GW of PV modules with D. E. Shaw Renewable Investments (DESRI) as it cut its losses in H1 2022 compared with the same period last year.

The company has signed a binding agreement to supply at least 3.75GW of solar modules, manufactured at its Goodyear, Arizona site, for DESRI’s large-scale projects. Delivery of the modules are expected between 2024 and 2029.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Under the agreement, DESRI, which will make a “substantial annual down payment” to facilitate the module production, has a first right of refusal to increase the contract quantity to 5GW as well as to enter into a contract extension beyond the five-year term. 

“DESRI and Meyer Burger intend to develop their cooperation into a long-term partnership in the field of solar module supply,” Meyer Burger said in its H1 2022 financial statement.

That statement also revealed that the module maker had cut its net losses to CHF24.4 million (US$25.5 million), down from the CHF30.9 million loss (US$32.3 million) it made in the first half of last year.

In order to meet DESRI’s demand, Meyer Burger is planning to increase its module production capacity, financed via potential capital measures, even as it recently slashed its production forecast amid supply chain uncertainty.

Meyer Burger’s original business plan has not included any capacity expansion in the short-term, but with the DESRI contract now secured and other supply-side factors, such as longer lead times for equipment and growing working capital requirements, representing a potential hinderance, it has decided to move its financing plans forward.

As part of this, Meyer Burger is considering a potential capital increase to the tune of roughly CHF250 million (US$261 million) to be launched in the coming months in order to finance the planned capacity expansion, the company said, adding that details of the raise would be provided in an upcoming extraordinary general meeting.  

It is planning to add new equipment to its US factory in order to reach a nominal capacity of approximately 3GW by mid-2024. It is also planning to expand the Goodyear site to 1GW annual capacity for utility modules in line with the contract with DESRI as well as increase its solar cell site in Germany – Thalheim – by an additional 1.5GW.

The company said its expansion plans in the US would be supported by the recent passing of the Inflation Reduction Act (IRA) by the Biden administration. The IRA, Meyer Burger said, would “provide significant financial support in form of a tax credit for the manufacturing of components along the solar value chain in the USA”.

“The tax credit amount for each solar module produced is equal to the product of US$0.07 multiplied by the nominal power of the module.”

PV Tech Premium has examined how the IRA looks set to “dramatically change” the US solar manufacturing landscape through its incentives schemes, with a massive increase in production capacity and deployment expected as a result.

25 April 2024
5pm BST (9am PDT)
The webinar will provide the very latest trends in PV module supply and what is important when assessing product quality and reliability. How many of the imported modules for example, from Southeast Asia and India, are based on n-type TOPCon and heterojunction now? What is important to look at when assessing these new technologies’ reliability?
21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Sydney, Australia