Solar module maker Meyer Burger Technology said it is planning an ordinary capital increase as part of a rights offering with targeted gross proceeds of up to CHF 250 million ($253.66 million). 

The Swiss-based company said that markets for solar modules around the world, and particularly in Europe and the U.S., show strong growth, which it said is also benefiting from the recent energy crisis sparked by Russia’s invasion of Ukraine.

It said it recently signed a long-term supply agreement with renewable energy project developer DE Shaw Renewable Investments (DESRI) an 3.75 GW of capacity starting in 2024. The deal includes an option for DESRI to expand its purchase to 5 GW. 

Meyer Burger said it wants to “seize the opportunity for accelerated expansion” and increase its production capacity to around 3 GW per year. 

The company said recent political actions in Europe and the U.S. – including the European “Fit for 55” strategy and the REPowerEU program as well as the Inflation Reduction Act – support both the use of solar energy and related industrial activities. 

The company plans to use proceeds from the capital increase for its planned PV cell and module production expansion and for associated production and sales costs. 

Any remaining amount would fund strategic projects and for other general corporate purposes. 

Solar cell production is to be expanded at its Thalheim site in Germany and solar module production at its Goodyear site in Arizona. Meyer Burger said it has already signed a rental agreement for more than 40,000 square meters of space adjacent to its existing Thalheim facility. The first product deliveries from the Goodyear plant are expected in mid-2024.

The company said that with the new production capacity it will reach a total annual capacity of around 3 GW near the end of 2024. Of this, around 1.4 GW of the module production capacity in Germany is intended to serve the European residential and small commercial/industrial market segment.

Another 1 GW from Goodyear is earmarked for use in DESRI’s large-scale power plants. The remainder will be targeted for U.S. residential and small business/industrial demand. 

The company said the first module line in Freiberg is operating at its full annual capacity of around 400 MW.

The company said it anticipates that it will be eligible to receive tax credits under the Inflation Reduction Act for U.S. manufactured modules. A portion of any tax credits is expected to be passed on to customers in the form of price reductions for U.S.-made PV modules.