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First Solar (FSLR) Unveils 3.3 GW Manufacturing Facility in India
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First Solar, Inc. (FSLR - Free Report) recently launched its $700 million facility in Tamil Nadu, India, marking the country’s first fully vertically integrated solar manufacturing plant.
The facility has an annual capacity of 3.3 gigawatts (GW) and employs around 1,000 people. It produces First Solar’s Series 7 photovoltaic (PV) solar modules, which were developed in the United States and optimized for the Indian market.
Significance of the Facility
The manufacturing plant houses India’s first solar PV recycling plant, which provides closed-loop semiconductor recovery for use in new modules. The recycling plant also recovers other materials, such as aluminum, glass and laminates.
With its presence in an area of high baseline water stress, it is believed to be the world’s first net-zero water withdrawal solar manufacturing facility. It will entirely depend on tertiary-treated reverse osmosis water from the city’s sewage treatment plant with zero wastewater discharge.
The modules produced in the manufacturing facility come with one-fourth of the carbon and water footprint compared to the crystalline silicon solar panels produced in China.
First Solar’s Prospects in India’s Solar Market
India’s solar market provides significant growth opportunities, primarily driven by increased investment and deployment of solar plants and various government policies favoring development. First Solar is steadily gaining momentum in this region. It commenced production of Series 7 modules at its first manufacturing facility in the country. The facility demonstrates 12,000 module/day capability and a top module wattage of 535.
Such endeavors are likely to provide meaningful gains to the company in the days ahead, which can be further gauged by a recent projection by Mordor Intelligence. Per this report, India's solar market is projected to reach 195.11 GW by 2029 at a CAGR of 19.8% during 2024-2029.
Looking ahead, First Solar expects 10.9 GW of total opportunities in India’s solar market, including 3.8 GW of mid-to-late-stage opportunities. Recently, the company signed a 15-year power purchase agreement with Cleantech Solar to add 150 megawatts (MW) of PV solar and 16.8 MW of wind capacity in Tamil Nadu.
In light of such growth expectations and the recent launch, it is reasonable to assume that First Solar’s expansion plans in India could prove to be prudent, potentially enhancing its revenue generation prospects in the country.
Peer Moves
Other prominent players like Enphase Energy (ENPH - Free Report) and Canadian Solar (CSIQ - Free Report) are also expanding their footprint in India.
Enphase Energy already has a manufacturing facility in Chennai, Tamil Nadu. On Oct 16, 2023, the company started shipment of IQ8 Microinverters, with peak output AC power of 480 watts, in India to support high-powered solar modules.
ENPH has a long-term (three-to five-years) earnings growth rate of 18.3%. The stock delivered an average earnings surprise of 11.97% in the last four quarters.
Canadian Solar has a strong presence in the Asia-Pacific region, which contributed 12% to the total revenues in third-quarter 2023. The region, excluding China and Japan, had 2,226 megawatt-peak solar development project pipeline as of Sep 30, 2023.
The Zacks Consensus Estimate for CSIQ’s 2024 sales implies a rise of 19.9% over the previous year's figure. The stock boasts an average earnings surprise of 67.89% in the last four quarters.
Price Performance
Over the past three months, shares of FSLR have gained 8.4% against the industry’s 2.5% decline.
Another top-ranked stock in the same industry is Nextracker Inc. (NXT - Free Report) , carrying a Zacks Rank #2.
NXT has a long-term earnings growth rate of 35.2%. The Zacks Consensus Estimate for fiscal 2024 sales implies a rise of 23.2% over the prior-year’s reported figure.
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First Solar (FSLR) Unveils 3.3 GW Manufacturing Facility in India
First Solar, Inc. (FSLR - Free Report) recently launched its $700 million facility in Tamil Nadu, India, marking the country’s first fully vertically integrated solar manufacturing plant.
The facility has an annual capacity of 3.3 gigawatts (GW) and employs around 1,000 people. It produces First Solar’s Series 7 photovoltaic (PV) solar modules, which were developed in the United States and optimized for the Indian market.
Significance of the Facility
The manufacturing plant houses India’s first solar PV recycling plant, which provides closed-loop semiconductor recovery for use in new modules. The recycling plant also recovers other materials, such as aluminum, glass and laminates.
With its presence in an area of high baseline water stress, it is believed to be the world’s first net-zero water withdrawal solar manufacturing facility. It will entirely depend on tertiary-treated reverse osmosis water from the city’s sewage treatment plant with zero wastewater discharge.
The modules produced in the manufacturing facility come with one-fourth of the carbon and water footprint compared to the crystalline silicon solar panels produced in China.
First Solar’s Prospects in India’s Solar Market
India’s solar market provides significant growth opportunities, primarily driven by increased investment and deployment of solar plants and various government policies favoring development. First Solar is steadily gaining momentum in this region. It commenced production of Series 7 modules at its first manufacturing facility in the country. The facility demonstrates 12,000 module/day capability and a top module wattage of 535.
Such endeavors are likely to provide meaningful gains to the company in the days ahead, which can be further gauged by a recent projection by Mordor Intelligence. Per this report, India's solar market is projected to reach 195.11 GW by 2029 at a CAGR of 19.8% during 2024-2029.
Looking ahead, First Solar expects 10.9 GW of total opportunities in India’s solar market, including 3.8 GW of mid-to-late-stage opportunities. Recently, the company signed a 15-year power purchase agreement with Cleantech Solar to add 150 megawatts (MW) of PV solar and 16.8 MW of wind capacity in Tamil Nadu.
In light of such growth expectations and the recent launch, it is reasonable to assume that First Solar’s expansion plans in India could prove to be prudent, potentially enhancing its revenue generation prospects in the country.
Peer Moves
Other prominent players like Enphase Energy (ENPH - Free Report) and Canadian Solar (CSIQ - Free Report) are also expanding their footprint in India.
Enphase Energy already has a manufacturing facility in Chennai, Tamil Nadu. On Oct 16, 2023, the company started shipment of IQ8 Microinverters, with peak output AC power of 480 watts, in India to support high-powered solar modules.
ENPH has a long-term (three-to five-years) earnings growth rate of 18.3%. The stock delivered an average earnings surprise of 11.97% in the last four quarters.
Canadian Solar has a strong presence in the Asia-Pacific region, which contributed 12% to the total revenues in third-quarter 2023. The region, excluding China and Japan, had 2,226 megawatt-peak solar development project pipeline as of Sep 30, 2023.
The Zacks Consensus Estimate for CSIQ’s 2024 sales implies a rise of 19.9% over the previous year's figure. The stock boasts an average earnings surprise of 67.89% in the last four quarters.
Price Performance
Over the past three months, shares of FSLR have gained 8.4% against the industry’s 2.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Another Key Pick
First Solar currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another top-ranked stock in the same industry is Nextracker Inc. (NXT - Free Report) , carrying a Zacks Rank #2.
NXT has a long-term earnings growth rate of 35.2%. The Zacks Consensus Estimate for fiscal 2024 sales implies a rise of 23.2% over the prior-year’s reported figure.