Solar cell manufacturer Meyer Burger has shelved construction plans for its $400 million plant in Colorado Springs, Colorado, citing financial infeasibility, according to a news release.
The solar cell manufacturer decided to reduce the scale of its debt financing plans, tied to the Inflation Reduction Act, which will lower the funds available for construction and decrease its medium-term profitability targets, according to the company.
High interest rates and economic uncertainties are increasingly leading to delays for major construction projects across various sectors, including solar and EV manufacturing, as developers reassess financial strategies.
Here is a clash of monetary policy versus fiscal government spending. In this project monetary policy won out. High interest rates and economic uncertainty stopped this power company from building a plant for solar panels. The risk wasn’t worth the reward. Thus solar panels will not get cheaper if this continues