D.E. Shaw Renewable Investments (DESRI), one of the largest solar developers in the U.S., has terminated its master purchase agreement with Swiss manufacturer Meyer Burger.
The five-year deal that included purchasing up to 5 GW of solar panels was instrumental in supporting Meyer Burger’s manufacturing facility in Goodyear, Arizona. Meyer Burger expressed concern that, regardless of the outcome of this situation with DESRI, the cancellation raises significant doubts about its ability to continue as a going concern.
The contract with DESRI was a cornerstone of the multi-hundred-million-dollar Goodyear facility. The panels were intended to meet demand for U.S.-made solar modules eligible for federal incentives under the Inflation Reduction Act (IRA).
In May, Meyer Burger celebrated the production of its first solar modules at the Arizona factory, followed by an announcement in July that full-scale production was imminent. However, challenges soon emerged.
In August, the Biden Administration raised the solar cell import cap from 5 GW to 12.5 GW, easing restrictions on international supply. Shortly thereafter, Meyer Burger announced the cancellation of its planned solar cell manufacturing facility in Colorado Springs, Colorado, citing market conditions.
The company’s 2023 annual report highlighted the intense competition in the solar panel market, particularly from Chinese manufacturers, whose expansion has driven solar panels below production costs. Despite these challenges, Meyer Burger had pointed to its partnership with DESRI as a stabilizing factor. DESRI was not only a customer but also an investor during the company’s recent capital-raising efforts.
The DESRI agreement was designed to help the solar developer meet the IRA’s Domestic Content requirements, which offer a 10% bonus incentive for projects using U.S.-manufactured components. With Meyer Burger abandoning plans for U.S. solar cell production, it would have been forced to source cells from the open market to meet domestic content criteria.
The deal also highlighted a broader trend of solar developers assuming factory risk to secure reliable, long-term production capacity. For instance, Invenergy partnered with LONGi to establish a manufacturing facility in Ohio, reflecting the industry’s growing reliance on direct investments to guarantee supply.
