First Solar Releases Study Analyzing Economic Impact of American Manufacturing and Supply Chain Investments

Rhea-AI Summary

First Solar forecasts significant economic impact with over 30,000 jobs and $2.8 billion in labor income in 2026. The study highlights the company's contribution to the US economy, with added value and output. The analysis includes details of job creation, labor income, and economic growth projections.

Insights

Economist

The projected economic impact of First Solar's operations by 2026 suggests a notable multiplier effect, where each direct job at First Solar is expected to support an additional 7.3 jobs nationwide. This ripple effect is significant in economic terms as it indicates the potential for industry-driven growth, particularly in the solar energy sector. The estimated $2.8 billion in labor income and $10 billion in output reflect a substantial injection into the U.S. economy, potentially increasing demand for goods and services, stimulating further employment and contributing to overall economic expansion.

However, these forecasts are contingent on various factors, including the successful expansion of First Solar's manufacturing capacity to 14 GW and the continued support from legislative measures such as the Inflation Reduction Act. It's also worth noting that the study was commissioned by First Solar, which may introduce a degree of bias. Independent verification of these figures would be prudent for stakeholders to consider the long-term sustainability of this growth.

Market Research Analyst

From a market perspective, First Solar's investment in expanding its operational capacity and R&D infrastructure, particularly in states like Alabama, Louisiana and Ohio, positions it as a key player in the U.S. solar industry. The anticipated value addition of $5 billion and output of over $10 billion by 2026 could have a substantial impact on the solar market, potentially influencing supply chains and the competitive landscape.

It's crucial to analyze how First Solar's growth aligns with market trends towards renewable energy sources and how their vertical integration strategy might provide a competitive edge. The emphasis on using American-sourced raw materials could resonate with increasing consumer and investor interest in sustainable and domestically produced goods, possibly affecting First Solar's market share and stock performance.

Environmental Policy Analyst

The environmental implications of First Solar's expansion are twofold. On one hand, the increase in domestically produced photovoltaic solar panels contributes to the reduction of greenhouse gas emissions by promoting cleaner energy sources. On the other hand, the focus on a fully vertically integrated manufacturing process that transforms glass into functional solar panels within four hours demonstrates an efficiency that could set industry benchmarks for production and environmental impact.

Further examination of the environmental policies and practices of First Solar would be instrumental in understanding the broader implications for the renewable energy sector and its alignment with U.S. environmental objectives. This includes assessing the lifecycle of the solar panels, recycling capabilities and the overall carbon footprint of the manufacturing process.

• First Solar forecast to support over 30,000 direct, indirect, and induced jobs representing approximately $2.8 bn in labor income in 2026.
• Study reveals that every First Solar job in 2026 is expected to support 7.3 jobs across the nation.
• Solar manufacturer expected to add $5 bn in value and over $10 bn in output to 2026 US economy.

TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) released what is believed to be the first comprehensive economic analysis of a vertically integrated solar manufacturer’s value chain in the United States. The study, commissioned by First Solar and conducted by the Kathleen Babineaux Blanco Public Policy Center at the University of Louisiana at Lafayette, used IMPLAN economic software to analyze First Solar’s actual and forecasted US spending in 2023 and 2026 when the company expects to have 14 gigawatts (GW) of annual nameplate capacity across Alabama, Louisiana, and Ohio.

First Solar released what is believed to be the first comprehensive economic analysis of a vertically integrated solar manufacturer’s value chain in the United States. (Photo: Business Wire)

The study found that in 2023:

• First Solar supported an estimated 16,245 direct, indirect, and induced jobs across the country, representing $1.59 billion in annual labor income. With 2,700 employees and almost $490 million in direct labor income, every non-construction First Solar job supported six direct, indirect, and induced jobs across the US economy, and every dollar directly spent on wages created $3.3 in labor income.
• The fully vertically integrated solar manufacturer, which exited 2023 with over 6 GW of annual nameplate capacity, added $2.75 billion in value and $5.32 billion in output to the US economy during the year, including direct, indirect, and induced effects.
• The company’s construction activity in Alabama, Louisiana, and Ohio supported an estimated 5,765 direct, indirect, and induced jobs, representing over $600 million in labor income. Its construction activity is estimated to have added over $900 million in economic value and almost $2 billion in economic output in 2023.

Analyzing First Solar’s forecasted US spending in 2026, the study projects that:

• With the company expected to directly employ 4,100 people, it would support an estimated 30,060 direct, indirect, and induced jobs across the country in 2026. The study estimates that every First Solar job will support 7.3 jobs across the country, representing an estimated total labor income of $2.78 billion including direct, indirect, and induced effects.
• First Solar would add an estimated $4.99 billion in value and $10.18 billion in output to the US economy in 2026 alone. The findings are based on the company’s expectation that it will have 14 GW of operational nameplate capacity in the US in 2026 and include direct, indirect, and induced effects.

The study’s findings are unique to First Solar, which operates fully vertically integrated solar manufacturing facilities that produce thin film photovoltaic (PV) solar panels in a single process that integrates the manufacturing of wafers and cells. The process allows the company to transform a sheet of glass into a fully functional solar panel in approximately four hours. Additionally, First Solar relies primarily on an American value chain for the raw materials, including glass and steel, that enable its US manufacturing operations.

“This report reflects the real value of solar technology made in America for America, with materials sourced from businesses across the country, and not simply assembled here using imported components,” said Mark Widmar, chief executive officer, First Solar. “We know that our investments, catalyzed by the Inflation Reduction Act, are enabling jobs and bringing prosperity to communities in places such as Lawrence County, Alabama, Iberia Parish, Louisiana, and Crawford County, Pennsylvania, and this report helps quantify the extent of our contribution to the US economy in real terms.”

In addition to expanding its Ohio footprint to over 7 GW of annual nameplate capacity this year, the solar technology and manufacturing company expects to invest over $2 billion in new manufacturing facilities in Alabama and Louisiana, which are expected to come online in 2024 and 2026, respectively. Additionally, First Solar is investing up to $450 million in R&D infrastructure in Perrysburg, Ohio, which is expected to be operational in 2024.

The full study is available at www.firstsolar.com/USeconomy.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film PV modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV modules. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors

This press release contains various “forward-looking statements” which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning 1) the expectation that First Solar’s Ohio manufacturing footprint will exceed 7 GW of annual nameplate capacity in 2024; 2) the expectation that First Solar will invest over $2 billion in two new manufacturing facilities in Alabama and Louisiana; 3) the expectation that First Solar will have over 14 GW of annual nameplate capacity by 2026; 4) the expectation that First Solar’s new R&D center in Ohio will be completed in 2024 at an investment of up to $450 million; and 5) expected economic impacts of First Solar’s forecasted US spending, including direct, indirect, and induced jobs, estimated labor income and value and output contributions to the US economy. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on First Solar’s current expectations and First Solar’s projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. First Solar undertakes no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause First Solar’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. This press release contains references to data and information generated by an economic study conducted by the Kathleen Babineaux Blanco Public Policy Center at the University of Louisiana at Lafayette. The economic study is based on numerous assumptions, estimates and other data as more fully described in the report summarizing the study’s findings, which is available at www.firstsolar.com/USeconomy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240226265115/en/

Media

Reuven Proença

First Solar Media

reuven.proenca@firstsolar.com

Investors

Richard Romero

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

How many jobs is First Solar expected to support in 2026?

First Solar is expected to support over 30,000 direct, indirect, and induced jobs across the country in 2026.

What is the estimated total labor income in 2026 for First Solar jobs?

The estimated total labor income for First Solar jobs in 2026 is $2.78 billion, including direct, indirect, and induced effects.

What is the expected economic value and output addition by First Solar in 2026?

First Solar is expected to add an estimated $4.99 billion in value and $10.18 billion in output to the US economy in 2026.

Where can the full study be accessed?

The full study can be accessed at www.firstsolar.com/USeconomy.