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FSLR Inks Deal to Supply 1 GWDC of Series 6 Plus Modules
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First Solar, Inc. (FSLR - Free Report) recently inked an agreement with Capital Power Corporation involving the supply of its 1 gigawatt-direct current (GWDC) of Series 6 Plus modules to the latter. The solar modules planned to boost Capital Power’s solar development pipeline are scheduled for delivery between 2026 and 2028.
Benefits of the Order
First Solar is the largest manufacturer of solar modules in the United States. With its Series 6 module enjoying solid demand worldwide, First Solar is investing heftily in the production ramp-up of this module to expand its manufacturing capacity to meet the nation’s rapidly growing solar demand. Supply orders for its modules, like the latest one, are a bright example of that.
To this end, it is imperative to mention that the company is projected to build its fourth manufacturing facility in Alabama in the United States, which is expected to commence operations in late 2024, and expand its manufacturing footprint at its existing facilities in Ohio. When fully operational, these expansions in Ohio and Alabama are expected to increase its annual nameplate capacity in the United States to more than 10 gigawatts by 2025.
Due to such enormous manufacturing capacity expansion targets, followed by the successful delivery of modules, we may expect First Solar’s future operating results to reflect solid growth. As of Mar 31, 2023, First Solar entered into contracts with customers for the future sale of 69.4 GW of solar modules for an aggregate transaction price of $20.4 billion, which it expects to recognize as revenues through 2029.
As the United States installs more solar projects, we can project an inflow of more supply orders for FSLR’s modules in the coming days.
Peers Focus on Strengthening Manufacturing Base
Per the report from the Solar Energy Industries Association, the total capacity of the solar industry in the United States is likely to triple by 2028. Underlined by solid solar growth prospects in the next few years, apart from First Solar, solar companies that have committed to strengthening their manufacturing capacity in the United States are as follows:
Enphase Energy (ENPH - Free Report) : It is planning to open three manufacturing lines in the United States, adding a quarterly capacity of 4.5 million microinverters, thus bringing its total quarterly capacity to more than 10 million microinverters by the end of 2023. The company also plans to begin microinverter production with new contract manufacturing partners in the United States, starting in the second quarter of 2023.
Enphase boasts a long-term earnings growth rate of 24.7%. The Zacks Consensus Estimate for ENPH’s 2023 earnings suggests a growth rate of 18.2% from the prior-year reported figure.
Canadian Solar (CSIQ - Free Report) : The company announced in June 2023 that it is building its first manufacturing facility in the United States for producing solar photovoltaic modules (PV). The company has picked up Mesquite, TX, as the location for its first-ever manufacturing base in the nation.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings calls for a growth rate of 24.4% from the prior-year reported figure. CSIQ has returned 17% to its investors in the past year.
Emeren (SOL - Free Report) : The company had mid-to-late-stage projects of 863 MW in the United States as of Mar 31, 2023. Additionally, its projects are under development in Alabama, California, Illinois and Pennsylvania. In addition to the solar PV project portfolio, the company had a storage pipeline of 4,381 MW in the United States at different development stages as of Mar 31, 2023.
Its 2023 estimated sales suggest growth of 96.9% from the prior-year reported figure. SOL’s 2024 estimated sales imply a growth rate of 16.4% from the prior-year reported figure.
Price Movement
In the past year, shares of First Solar have surged 164.7% compared with the industry’s growth of 6.9%.
Image: Bigstock
FSLR Inks Deal to Supply 1 GWDC of Series 6 Plus Modules
First Solar, Inc. (FSLR - Free Report) recently inked an agreement with Capital Power Corporation involving the supply of its 1 gigawatt-direct current (GWDC) of Series 6 Plus modules to the latter. The solar modules planned to boost Capital Power’s solar development pipeline are scheduled for delivery between 2026 and 2028.
Benefits of the Order
First Solar is the largest manufacturer of solar modules in the United States. With its Series 6 module enjoying solid demand worldwide, First Solar is investing heftily in the production ramp-up of this module to expand its manufacturing capacity to meet the nation’s rapidly growing solar demand. Supply orders for its modules, like the latest one, are a bright example of that.
To this end, it is imperative to mention that the company is projected to build its fourth manufacturing facility in Alabama in the United States, which is expected to commence operations in late 2024, and expand its manufacturing footprint at its existing facilities in Ohio. When fully operational, these expansions in Ohio and Alabama are expected to increase its annual nameplate capacity in the United States to more than 10 gigawatts by 2025.
Due to such enormous manufacturing capacity expansion targets, followed by the successful delivery of modules, we may expect First Solar’s future operating results to reflect solid growth. As of Mar 31, 2023, First Solar entered into contracts with customers for the future sale of 69.4 GW of solar modules for an aggregate transaction price of $20.4 billion, which it expects to recognize as revenues through 2029.
As the United States installs more solar projects, we can project an inflow of more supply orders for FSLR’s modules in the coming days.
Peers Focus on Strengthening Manufacturing Base
Per the report from the Solar Energy Industries Association, the total capacity of the solar industry in the United States is likely to triple by 2028. Underlined by solid solar growth prospects in the next few years, apart from First Solar, solar companies that have committed to strengthening their manufacturing capacity in the United States are as follows:
Enphase Energy (ENPH - Free Report) : It is planning to open three manufacturing lines in the United States, adding a quarterly capacity of 4.5 million microinverters, thus bringing its total quarterly capacity to more than 10 million microinverters by the end of 2023. The company also plans to begin microinverter production with new contract manufacturing partners in the United States, starting in the second quarter of 2023.
Enphase boasts a long-term earnings growth rate of 24.7%. The Zacks Consensus Estimate for ENPH’s 2023 earnings suggests a growth rate of 18.2% from the prior-year reported figure.
Canadian Solar (CSIQ - Free Report) : The company announced in June 2023 that it is building its first manufacturing facility in the United States for producing solar photovoltaic modules (PV). The company has picked up Mesquite, TX, as the location for its first-ever manufacturing base in the nation.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings calls for a growth rate of 24.4% from the prior-year reported figure. CSIQ has returned 17% to its investors in the past year.
Emeren (SOL - Free Report) : The company had mid-to-late-stage projects of 863 MW in the United States as of Mar 31, 2023. Additionally, its projects are under development in Alabama, California, Illinois and Pennsylvania. In addition to the solar PV project portfolio, the company had a storage pipeline of 4,381 MW in the United States at different development stages as of Mar 31, 2023.
Its 2023 estimated sales suggest growth of 96.9% from the prior-year reported figure. SOL’s 2024 estimated sales imply a growth rate of 16.4% from the prior-year reported figure.
Price Movement
In the past year, shares of First Solar have surged 164.7% compared with the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
Zacks Rank
First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.