First Solar Inc. is investing up to $1.1 billion to construct its fifth manufacturing facility in the USA, further expanding America’s capacity to produce its own photovoltaic (PV) solar modules.
First Solar’s planned fully vertically integrated facility is expected to grow the company’s nameplate manufacturing capacity by 3.5 gigawatts (GW) to reach approximately 14 GW in the USA and 25 GW globally in 2026, the company said in a news release last week.
First Solar has not yet chosen a location for the new facility, which it expects to be completed and commissioned in the first half of 2026. The facility’s completion in 2026 is contingent upon obtaining necessary permits and approvals, according to the news release.
The facility will produce First Solar’s Series 7 modules, which are expected to be manufactured with 100-percent USA-made components identified in the current domestic content guidance issued by the Department of Treasury.
Once the new factory is completed and ramped, Series 7 modules will account for over two-thirds of the company’s annual domestic nameplate capacity. The Series 7 modules are currently produced at First Solar’s Ohio facility with domestic-made glass and steel, the news release said.
“This decision is underpinned by robust fundamentals, including an order backlog of approximately 78 gigawatts, the industry’s strongest balance sheet, a repeatable vertically integrated manufacturing template, and a proven technology platform”, First Solar CEO Mark Widmar said. “With this investment, we continue to help deliver on the promise of the Inflation Reduction Act, which is to create enduring value for our country. By expanding America’s solar manufacturing base, and the value chains that support it, we are working to ensure that the US enters the next decade in a position of strength, fully capable of producing the technology it needs to complete its transition to a sustainable energy future.”
Over the past year, First Solar said it has committed to over $2.8 billion in capital investment and 7.9 GW of additional manufacturing capacity in the country. The company had previously announced an approximately $1.3 billion investment in a new 3.5 GW manufacturing facility in Alabama and a 0.9 GW expansion of its existing manufacturing footprint in Ohio, both of which are expected to be completed at the end of 2024.
First Solar also previously announced an investment of up to $370 million for a dedicated research and development innovation center in Perrysburg, Ohio, which is expected to be completed in 2024.
According to a separate news release, Matrix Renewables entered into a framework agreement to procure approximately 2.1 GW of advanced thin film modules from First Solar. The modules, which will be delivered between 2024 and 2027, will power Matrix projects in the USA and Spain. This marks Matrix’s first order for First Solar’s ultra-low carbon PV technology, the news release said.
“As a purpose-driven company, and as part of our supply chain strategy of partnering with technology market leaders, we are thrilled to be working with First Solar to supply our projects in the US market, and a number of our Spanish projects, with responsibly produced ultra-low carbon PV modules and setting the bar for environmental, social, and governance standards in solar manufacturing and sourcing”, Matrix President Luis Sabate said. “With this deal, we’re getting access to solar technology without compromising on competitiveness or performance.”
“Matrix is the latest in a number of large IPPs [independent power producers], in the US and internationally, that are choosing to partner with First Solar not just on the strength of our technology and competitiveness, but also because we share the same values”, First Solar Chief Commercial Officer Georges Antoun said. “This latest order underscores our belief that a growing number of developers are recognizing the value of Responsible Solar and of working with a partner that delivers on its commitments.”
Matrix Renewables is a renewable energy platform created and backed by global alternative asset manager TPG and its $17 billion platform TPG Rise. In the USA, Matrix owns more than 6.0 GW of projects in various stages of development across four different regions. Globally, including Matrix’s presence in Spain, Italy, and Chile, Matrix’s footprint has already surpassed 13 GW of solar power, battery storage and green hydrogen projects, according to the news release.
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