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Dive brief:
- Solar cell manufacturer Meyer Burger has abandoned building plans for its $400 million plant in Colorado Springs, Colo., citing financial unviability, according to a news release.
- The solar cell maker decided to scale back its debt financing plans, tied to the Inflation Reduction Act, which will reduce funds available for construction and lower its medium-term profitability goals , according to the company.
- High interest rates and economic uncertainties are causing increasing delays in major construction projects in various sectors, including solar and EV manufacturingas developers reevaluate financial strategies.
Diving knowledge:
Meyer Burger initially planned to finance part of the construction of its solar cell manufacturing facility using 45X tax credits from the Inflation Reduction Act, according to the company. These credits can be monetized, converted to cash, or used to reduce the company’s tax liability, which in turn would help finance the project.
But due to financial and market conditions, Meyer Burger has decided to reduce the amount of debt it originally intended to raise with these tax credits. In other words, the solar cell maker is cutting back on the funding it was hoping to get.
This will directly affect the funding available for your construction projects.
“The planned construction of a solar cell production facility in Colorado Springs, Colorado is no longer financially viable for the company due to recent developments and therefore the project will be discontinued,” according to a statement from the company on Monday. “The planned cooperation with an American technology group will not be implemented at this time due to the revised strategy.”
Meyer Burger initially planned to convert Intel’s old semiconductor plant into one $400 million solar cell installation in Colorado and expand production capacity at its Goodyear, Arizona site. Both projects have now been put on hold, according to the company.
The solar cell manufacturer’s existing solar cell production site in Thalheim, Germany will remain operational and continue to form the backbone of Meyer Burger’s solar cell supply, according to the statement.
