First Solar, Inc. (FSLR - Free Report) has recently signed a multiyear deal to supply more than 1.7 gigawatts (GW) of high-performance Series 6 photovoltaic (PV) thin-film solar modules to Intersect Power, a U.S.-based utility-scale renewable energy developer. First Solar will commence deliveries in the fourth quarter of
2020, which is expected to continue until the end of 2021.
This deal is the single largest order for First Solar’s Series 6 modules to date, which will be deployed in five projects developed by Intersect Power and built by Signal Energy in Texas and California.
Why Choose First Solar’s Series 6 Module?
As the Series 6 solar modules are produced in just 3.5 hours using First Solar’s proprietary thin-film technology, it offers a performance advantage over other conventional solar panels. Moreover, with a carbon footprint up to six times lower than crystalline silicon PV panels, Series 6 offers a superior environmental profile and cleaner solar electricity. These factors must have prompted Intersect Power’s decision to choose these modules.
In the context of the Series 6 PV modules, it is imperative to mention that First Solar has been witnessing increased demand, lately, from the U.S. commercial and industrial solar market. This is evident from the deals acquired by the company to supply solar modules for Microsoft (MSFT - Free Report) data centers in Arizona and build an additional 122-MW project for Facebook (FB - Free Report) data center in Utah.
Furthermore, per the Solar Energy Industries Association (SEIA), California currently has the largest solar market in the United States, including a $57-billion investment in solar power development activities. Additionally, Texas is poised to become a nationwide leader in solar energy production, with more than 4 GW of capacity expected to be installed over the next five years, per the SEIA.
Such predictions clearly indicate the huge growth prospects these solar markets have, which in turn will be hugely beneficial for First Solar. Considering the latest deal, the company will be able to further fortify its footprint in these two states, going ahead. In fact, to meet the rapidly rising demand for its Series 6 solar modules, First Solar is expanding its manufacturing capacity, with nearly $1 billion of total investments. As California and Texas aim at significantly expanding their solar portfolio, we may expect the company to ink more such supply contracts in the days ahead.
In the past month, First Solar stock has gained 0.8% against its industry’s 4.9% decline.
Zacks Rank & A Stock to Consider
First Solar currently carries a Zacks Rank #3 (Hold).
A top-ranked stock from the same sector is SolarEdge Technologies, Inc. (SEDG - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies delivered average positive earnings surprise of 1.23% in the last four quarters. Its long-term growth estimates currently stand at 22%.
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