First Solar Plans Massive U.S. Factory Expansions

By Christian Roselund

On 30 August, the largest U.S. module maker made the first public announcement of a solar PV manufacturing expansion following the passage of the Inflation Reduction Act (IRA). First Solar has revealed plans to build a factory at a new site in the southeastern United States, as well as expanding the capacities of its existing factories in Ohio.

The company will invest up to $1.2 billion in these ventures, which will increase the capacity of modules it is able to make each year by 4.4 gigawatts. Once its factory currently under construction in Ohio and these investments come online, First Solar expects to have the ability to produce 10.6 gigawatts of modules each year in the United States.

This expansion will give First Solar a capacity more than the United States’ second-largest module maker, Hanwha Q Cells. Q Cells is currently expanding at its manufacturing site in the state of Georgia, and when its new lines come online the company expects to have an annual capacity of 3.1 gigawatts at the site. Q Cells is further scouting for locations for a new integrated 9-gigawatt ingot, wafer, cell, and module factory. However, the company told pv magazine that its plans are at the due diligence stage and that it has not made a final decision regarding the new integrated plant (see the 23 August U.S. Energy Transition Report for more details).

Technology Meets Policy

First Solar’s modules comprise thin layers of cadmium telluride applied to glass. As such, First Solar is not dependent on the supply of polysilicon and its precursors that have been at the heart of U.S. trade policy challenges such as the Uyghur Forced Labor Prevention Act (UFLPA). The company was one of only two among dozens of thin-film startups to reach gigawatt-scale manufacturing and is the last remaining large thin-film solar PV manufacturer outside of China.

Nor is First Solar currently competing directly with other U.S. manufacturers. The company makes products almost exclusively for large solar farms, as opposed to other module producers in the U.S. that produce higher-priced crystalline silicon modules primarily for the residential and
commercial segments.

These characteristics put First Solar in a unique position to serve the U.S. utility-scale market with less trade policy risk and the company utilizes this as a competitive advantage. As of July 2022, First Solar was sold out through the end of 2024 (excepting a new factory in India that has yet to come online) and was taking orders for deliveries through 2026.

First Solar will make its Series 7 product at its new factory under construction in Ohio and the new factory to be located in the U.S. Southeast. This is a large-format module with power ratings of 505 – 540 watts, which at 2.3 meters by 1.2 meters is even larger than First Solar’s Series 6.

First Mover Advantage

First Solar is far from the only PV manufacturer considering an expansion in the United States following the passage of the Inflation Reduction Act and its generous incentives for production along the solar value chain. CEA is tracking around 15 gigawatts of potential U.S. solar manufacturing expansions and expects more of these plans to finalize in the coming weeks and months.

However, as a first mover First Solar may be able to claim not only an $0.11 per watt credit for each module it produces, but also a share of the Advanced Energy Project Credit. This is a 30% credit for investments in clean energy manufacturing and recycling facilities that is capped at $10 billion, and CEA expects that this credit will be fully claimed within the next few years.

Source: First Solar to Invest up to $1.2 Billion in Scaling Production of American-Made Responsible Solar by 4.4 GW (First Solar)