Swiss solar cell manufacturer Meyer Burger announced on August 26th that due to financial infeasibility, it has shelved construction plans for its plant in Colorado, USA.
The latest investigation by the Financial Times found that after two years of implementation of the US IRA and CHIPS and Science Act, a large number of manufacturing projects such as solar energy, hydrogen energy, electric vehicles, and batteries have been delayed or stalled.
Industry analysis suggests that the project delays or suspensions are mainly due to vague government subsidy rules, deteriorating market conditions, slowing demand, talent shortages, and a lack of policy certainty during the election years.
In 2022, the US government provided subsidies to the solar manufacturing industry through the Inflation Reduction Act (IRA). Since 2023, many global solar companies, including some leading Chinese solar companies, have chosen to set up factories in the US.
However, during the US presidential election period, Republican presidential candidate Donald Trump has made it clear that if elected, he will increase investment in traditional energy in the US and reduce subsidies for new energy. His senior campaign officials and advisers also confirmed that Trump will seek to thoroughly reform America’s climate and energy policies during his second term to maximize fossil fuel production. And as the core of Biden’s economic strategy, the Inflation Reduction Act (IRA) will become Trump’s target.
On the other hand, the high cost of raw materials and labor brought about by inflation has further increased the cost pressure on the US manufacturing industry. John Hensley, the Vice President of Markets and Policy Analysis for the American Clean Power Association, said that not all factories, facilities, and production lines will be put into operation. This is just a normal manifestation of competition, and personnel turnover is inevitable.
While Mayor Craig McFarland of Casa Grande, Arizona, said that due to labor and supply chain reasons, the costs have generally been higher than expected, and companies have had to reassess their investments.
It is reported that nearly 40% of the announced projects with a cost of over $100 million in the US are delayed or suspended in progress. The largest projects that have been put on hold are the $1 billion solar module factory invested by Italian National Electric Company (ENEL) in Oklahoma, and $2.3 billion cell storage facilities invested by South Korean LG Energy Solutions in Arizona, etc.
Over the past year, several solar cell manufacturers, including Maxeon Solar Technologies from the US, Heliene from Canada, and Meyer Burger from Switzerland, have postponed their plans to set up factories in the US.
Meyer Burger announced at the end of 2023 to build a new factory in the US, and closed Europe’s largest solar module production base in Freiberg, Germany in April of 2024. However, this has clearly brought new uncertainties to the company’s development.
In late June of 2024, Meyer Burger also announced that its HJT module plant located in Goodyear had successfully passed the audit and started production. The annual production capacity will reach 2GW, and the required cells will come from its cell factory in Thalheim, Germany. The company had also planned to build a HJT cell plant with an annual production capacity of 2GW in Colorado. However, this plan has now been put on hold.
