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First Solar (FSLR), Energix Ink Supply Deal for Solar Modules
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First Solar, Inc. (FSLR - Free Report) recently inked an agreement with Energix Renewables to supply 5 gigawatts-direct current (GWDC) of its ultra-low-carbon thin-film solar modules to the latter. The solar modules, which are scheduled to be delivered between 2026 and 2030, will be installed in Energix’s series of projects in Israel, Poland and the United States.
First Solar will also be accountable for offering Recycling Services to manage the end-of-life handling of decommissioned modules.
Energix, which boasts more than 7 GW of projects under development, has procured more than 3.5 GWDC of modules from First Solar since 2017. This entails the ability of First Solar modules to consistently meet customer’s evolving demand and witness significant orders.
First Solar’s Growth Plans
With solar modules forming an integral part of solar panels and First Solar being the largest manufacturer of solar modules in the United States, the company enjoys significant demand for its products. To meet this solid demand, First Solar is investing heftily in the production ramp-up of solar modules to expand its manufacturing capacity.
FSLR is currently in the process of expanding its manufacturing capacity by 11 GW, including its third manufacturing facility in the United States, which commenced its commercial operation in early 2023, and the first manufacturing facility in India, which should be operational by the second half of 2023.
It is now projected to build its fourth manufacturing facility in Alabama in the United States, which is expected to commence operations in late 2024 and the expansion of 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 GW by 2025. Such production ramp-up expectations should enable First Solar to maintain its position as the largest U.S. solar module manufacturer.
Global Solar Growth Prospects
The solar market globally is likely to experience substantial multi-fold growth in the coming years as nations worldwide embrace solar energy to meet their energy requirements. Per the report from Fortune Business Insights, the global solar market is poised to witness a CAGR of 6.9% over the 2021-2029 period.
Considering such favorable growth prospects, other than FSLR, solar players that are rapidly expanding their footprint globally are as follows:
Enphase Energy (ENPH - Free Report) : An expanding solar market has set the stage for the solar microinverter market’s boom, which has been benefiting Enphase. Apart from the United States, the company is steadily expanding its footprint in Europe, Brazil and Australia.
Enphase boasts a long-term earnings growth rate of 25.3%. The Zacks Consensus Estimate for 2023 sales suggests a growth rate of 30.8%.
Canadian Solar (CSIQ - Free Report) : It caters to a geographically diverse customer base across key markets in the United States, China, Japan, the U.K. and Canada and emerging markets in Brazil, India, Mexico, Italy, Germany, South Africa and the Middle East. Of late, the company has expanded its global late-stage project pipeline into nations like Argentina, Australia and South Korea as these markets are expected to see the next phase of industrial growth.
The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings calls for a growth rate of 67.4% from the prior-year reported figure. CSIQ has returned 22.5% to its investors in the past year.
Emeren (SOL - Free Report) : It continues to benefit from a steady flow of contracts from domestic and international customers. With the successful execution of its downstream strategy, the company is currently expanding its business in international markets.
As of Mar 31, 2023, Emeren owned 258 megawatts (MW) of operating projects. Of these, the company operates 174 MW of rooftop projects in China, 24 MW in the United States and 60 MW in Europe.
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 185.5% compared with the industry’s growth of 13%.
Image: Bigstock
First Solar (FSLR), Energix Ink Supply Deal for Solar Modules
First Solar, Inc. (FSLR - Free Report) recently inked an agreement with Energix Renewables to supply 5 gigawatts-direct current (GWDC) of its ultra-low-carbon thin-film solar modules to the latter. The solar modules, which are scheduled to be delivered between 2026 and 2030, will be installed in Energix’s series of projects in Israel, Poland and the United States.
First Solar will also be accountable for offering Recycling Services to manage the end-of-life handling of decommissioned modules.
Energix, which boasts more than 7 GW of projects under development, has procured more than 3.5 GWDC of modules from First Solar since 2017. This entails the ability of First Solar modules to consistently meet customer’s evolving demand and witness significant orders.
First Solar’s Growth Plans
With solar modules forming an integral part of solar panels and First Solar being the largest manufacturer of solar modules in the United States, the company enjoys significant demand for its products. To meet this solid demand, First Solar is investing heftily in the production ramp-up of solar modules to expand its manufacturing capacity.
FSLR is currently in the process of expanding its manufacturing capacity by 11 GW, including its third manufacturing facility in the United States, which commenced its commercial operation in early 2023, and the first manufacturing facility in India, which should be operational by the second half of 2023.
It is now projected to build its fourth manufacturing facility in Alabama in the United States, which is expected to commence operations in late 2024 and the expansion of 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 GW by 2025. Such production ramp-up expectations should enable First Solar to maintain its position as the largest U.S. solar module manufacturer.
Global Solar Growth Prospects
The solar market globally is likely to experience substantial multi-fold growth in the coming years as nations worldwide embrace solar energy to meet their energy requirements. Per the report from Fortune Business Insights, the global solar market is poised to witness a CAGR of 6.9% over the 2021-2029 period.
Considering such favorable growth prospects, other than FSLR, solar players that are rapidly expanding their footprint globally are as follows:
Enphase Energy (ENPH - Free Report) : An expanding solar market has set the stage for the solar microinverter market’s boom, which has been benefiting Enphase. Apart from the United States, the company is steadily expanding its footprint in Europe, Brazil and Australia.
Enphase boasts a long-term earnings growth rate of 25.3%. The Zacks Consensus Estimate for 2023 sales suggests a growth rate of 30.8%.
Canadian Solar (CSIQ - Free Report) : It caters to a geographically diverse customer base across key markets in the United States, China, Japan, the U.K. and Canada and emerging markets in Brazil, India, Mexico, Italy, Germany, South Africa and the Middle East. Of late, the company has expanded its global late-stage project pipeline into nations like Argentina, Australia and South Korea as these markets are expected to see the next phase of industrial growth.
The Zacks Consensus Estimate for Canadian Solar’s 2023 earnings calls for a growth rate of 67.4% from the prior-year reported figure. CSIQ has returned 22.5% to its investors in the past year.
Emeren (SOL - Free Report) : It continues to benefit from a steady flow of contracts from domestic and international customers. With the successful execution of its downstream strategy, the company is currently expanding its business in international markets.
As of Mar 31, 2023, Emeren owned 258 megawatts (MW) of operating projects. Of these, the company operates 174 MW of rooftop projects in China, 24 MW in the United States and 60 MW in Europe.
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 185.5% compared with the industry’s growth of 13%.
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.