Responsible Solar: First Solar Leads Industry with Validated Environmental and Social Performance and Transparent Reporting

Rhea-AI Summary

First Solar, Inc. (Nasdaq: FSLR) has set new industry benchmarks in sustainable solar technology, as detailed in its 2024 Sustainability Report. The company's Series 6 Plus and Series 7 TR1 modules are the world's first to achieve EPEAT Climate+ ultra low-carbon designation. First Solar leads in high-value solar recycling with a 95% global average material recovery rate and operates facilities across five countries. The company received top ratings in the 2023 Renewable Energy Human Rights Benchmark report and achieved platinum status in social audits across its global manufacturing footprint. First Solar is expanding its manufacturing capacity from 16 GW in 2023 to over 25 GW by 2026, with new facilities in Alabama and Louisiana.

Positive

• Series 6 Plus and Series 7 TR1 modules achieved EPEAT Climate+ ultra low-carbon designation
• 95% global average material recovery rate in high-value solar recycling
• Top-rated solar manufacturer in 2023 Renewable Energy Human Rights Benchmark report
• Platinum status achieved in social audits across global manufacturing footprint
• Expanding manufacturing capacity from 16 GW in 2023 to over 25 GW by 2026
• $4.1 billion manufacturing expansion strategy since 2020
• Investing approximately $500 million in research and development infrastructure in Ohio

Negative

• None.

Insights

Environmental Sustainability Expert

First Solar's commitment to sustainability sets a new industry standard. Their Series 6 Plus and Series 7 TR1 modules achieving the EPEAT Climate+ designation with a carbon footprint up to four times lower than competitors is groundbreaking. The 95% global average material recovery rate in their recycling program is impressive, showcasing a circular economy approach. This positions First Solar as a leader in addressing the solar industry's carbon intensity concerns and end-of-life waste management. Their proactive stance on sustainability could attract environmentally conscious investors and potentially lead to preferential treatment in markets with strict environmental regulations.

Human Rights Analyst

First Solar's leadership in human rights within the solar industry is noteworthy. Achieving the highest possible rating in independent third-party social audits across their global manufacturing footprint demonstrates a strong commitment to ethical practices. Their non-reliance on Chinese crystalline silicon supply chains, particularly avoiding sourcing from Xinjiang, mitigates significant human rights risks. This proactive approach not only differentiates First Solar from competitors but also reduces potential reputational and regulatory risks associated with human rights violations in the supply chain. Such a stance could appeal to socially responsible investors and customers, potentially leading to increased market share and brand value.

Manufacturing Technology Expert

First Solar's unique CdTe semiconductor technology and efficient manufacturing process, transforming glass into solar panels in just four hours, represent a significant competitive advantage. This proprietary technology not only enables lower carbon emissions but also potentially reduces production costs and time-to-market. The ongoing $4.1 billion manufacturing expansion, set to increase capacity from 16 GW to over 25 GW by 2026, signals strong growth potential. Additionally, the $500 million investment in R&D infrastructure suggests a commitment to maintaining technological leadership. These factors combined could lead to improved margins, market share growth and long-term competitiveness in the rapidly evolving solar industry.

• Series 6 Plus and Series 7 TR1 are world’s first EPEAT Climate+ ultra low-carbon modules
• World’s largest high-value solar recycler achieves 95% global average material recovery rate
• Top rated solar manufacturer in 2023 Renewable Energy Human Rights Benchmark report

TEMPE, Ariz.--(BUSINESS WIRE)-- According to its 2024 Sustainability Report, which was released today, First Solar, Inc. (Nasdaq: FSLR) has established new industry benchmarks including verifiable leadership in ultra low-carbon solar technology, high-value recycling, respect for human rights, and transparent reporting. Headquartered in the United States, First Solar is the largest solar manufacturer in the Western Hemisphere and the world’s largest high-value solar panel recycler.

“As we celebrate 25 years of First Solar in 2024, we also celebrate 25 years of an unwavering commitment to the principles of Responsible Solar, which embodies sustainability, improves people's lives, has zero tolerance for human rights abuses, and meaningfully supports the fight against climate change,” said Mark Widmar, chief executive officer of First Solar. “The results of building our company on a principled foundation are apparent from our verifiable leadership in environmental and social performance and reporting. The third-party validated benchmarks that confirm our leadership are essential to further differentiate ourselves from the competition while challenging the industry to do better.”

First Solar’s advanced, highly differentiated manufacturing process allows it to transform a sheet of glass into ready-to-ship thin film solar panels in approximately four hours. Its uniquely American cadmium telluride (CdTe) semiconductor leads the industry in environmental performance and competitiveness, allowing the company to produce solar panels with a carbon footprint up to four-times lower than those utilizing crystalline silicon cells made from Chinese polysilicon, even if assembled into panels in the United States. The technology’s leadership was recently validated when First Solar’s Series 6 Plus and Series 7 TR1 became the world’s first solar panels to achieve an EPEAT Climate+ designation by meeting the ultra-low-carbon threshold of ≤400 kg CO2e/kWp, enabling greater avoided emissions across their lifetime.

“As the Clean Energy Buyers Institute warned, if the solar manufacturing industry continues its business-as-usual approach by relying on cheap, subsidized coal electricity to produce polysilicon, it runs the risk of overtaking aluminum production in carbon intensity,” said Pat Buehler, chief product officer, First Solar. “We must act now to change course by actively reducing the carbon footprint of solar technologies while also investing in high-value recycling that addresses the end-of-life management of decommissioned solar panels in a sustainable manner. Our industry must embody sustainability, not simply pay lip service to it.”

First Solar operates high value recycling facilities in the US, Germany, India, Malaysia, and Vietnam, representing 88,000 metric tons of nameplate annual recycling capacity at the end of 2023, capable of recycling approximately 2.6 million modules per year. The company established the industry’s first global recycling program in 2005 and has recycled nearly 400,000 metric tons of PV modules to date, more than any other PV recycler or PV recycling program. In 2023, First Solar’s high value module recycling program recorded an average global material recovery rate of 95%, including glass, aluminum, steel, laminate, and semiconductor material.

“We continue to reinforce that our industry’s work in driving the energy transition and fighting climate change does not serve as a credit against its social and human rights responsibilities,” said Samantha Sloan, vice president of Global Policy, Sustainability, and Marketing, First Solar. “And we lead by example, operating one of the world’s most tightly controlled and traceable solar supply chains and the industry’s only manufacturing footprint to have completed social audits by a credible third party. We are proud of our uncompromising commitment to human rights and challenge others in the industry to join us on this journey.”

First Solar remains the only major solar manufacturer to have not just conducted independent third-party, on-site social audits across its global manufacturing footprint in 2023, but also to have achieved the highest possible rating. The audits conducted under the Responsible Business Alliance’s (RBA) Validated Assessment Program (VAP) awarded the company’s operational facilities in the US, Vietnam, and Malaysia with platinum status as of December 2023. Not reliant on Chinese crystalline silicon supply chains, First Solar does not source materials from Xinjiang, China.

The Business and Human Rights Resource Centre commented in its 2023 Renewable Energy Human Rights Benchmark report that the solar panel manufacturing industry lags “significantly on human rights commitments and practices." However, it also highlighted First Solar as being one of only two companies of the six evaluated major solar manufacturers to have a strong human rights commitment in place. First Solar outperformed the other five companies assessed in the Benchmark report.

Since the start of this decade, First Solar has embarked on a $4.1 billion manufacturing expansion strategy that has seen it grow from approximately 6 GW operational in 2020 to over 16 GW global nameplate capacity at the end of 2023. The company currently operates manufacturing facilities in the US, India, Malaysia, and Vietnam. Two factories, one in Alabama, which is expected to be commissioned in the second half of 2024, and the other in Louisiana, which is scheduled to come online in the second half of 2025, are projected to take the company’s global footprint to over 25 GW of annual nameplate capacity in 2026. Additionally, the company is investing approximately half a billion dollars in research and development infrastructure in Ohio, including the Jim Nolan Center for Solar Innovation, which was commissioned earlier this year.

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 First Solar’s expectations that i) the company will have over 25 GW of annual global nameplate capacity in 2026; and ii) the company will commission its new manufacturing facilities in Alabama and Louisiana in the second half of 2024 and 2025, respectively. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909937420/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

What is First Solar's (FSLR) carbon footprint compared to competitors?

First Solar's solar panels have a carbon footprint up to four times lower than those using crystalline silicon cells made from Chinese polysilicon, even if assembled into panels in the United States.

How much recycling capacity does First Solar (FSLR) have?

As of the end of 2023, First Solar operates high-value recycling facilities with a nameplate annual recycling capacity of 88,000 metric tons, capable of recycling approximately 2.6 million modules per year.

What is First Solar's (FSLR) global manufacturing capacity?

First Solar's global nameplate capacity was over 16 GW at the end of 2023, with plans to increase to over 25 GW of annual nameplate capacity by 2026.

Where does First Solar (FSLR) have manufacturing facilities?

First Solar currently operates manufacturing facilities in the US, India, Malaysia, and Vietnam, with new factories under construction in Alabama and Louisiana.