Switzerland-based solar panel manufacturer Meyer Burger has announced it would set up a 2 GW solar cell factory in Colorado Springs, Colorado.

The company said the move comes as part of Meyer Burger’s efforts to strengthen its position in the North American solar market and meet the increasing demand for renewable energy solutions in the region.

The company’s upcoming solar cell factory is scheduled to begin production in the fourth quarter of this year. The facility will be equipped to manufacture solar cells, utilizing heterojunction technology.

The solar cells produced at this factory will be exclusively used in Meyer Burger’s own module production line, which is currently under construction in Goodyear, Arizona.

Meyer Burger had earlier intended to supply its module plant in the United States with heterojunction solar cells imported from Germany. However, with the establishment of the Colorado Springs factory, the company has redefined its strategy to localize production.

The shift is expected to bring several benefits, including reduced transportation costs, greater operational efficiency, and better responsiveness to market dynamics.

Meyer Burger’s investment will be supported by tax credits under the Inflation Reduction Act (IRA). The IRA tax credits alone are projected to reach up to €1.4 billion ($1.6 billion) between 2024 and 2032, providing a substantial boost to the company’s financial prospects.

Last August, President Joe Biden signed the ‘Inflation Reduction Act of 2022,’ which addresses issues of climate change, taxes, healthcare, and inflation. The Act proposes $369.75 billion in energy security and climate change programs over the next ten years.

In March, Meyer Burger said it was introducing a unified glass-based product platform for its solar modules. The modules will have optimized glass on the front and back. They will have enhanced bifaciality, a prominent attribute in heterojunction solar technology.