First Solar, Inc. FSLR has unveiled its state-of-the-art $700 million facility in Tamil Nadu, India, marking the country’s maiden fully vertically integrated solar manufacturing plant. The cutting-edge facility boasts an annual capacity of 3.3 gigawatts (GW) and provides employment for approximately 1,000 people. It focuses on producing First Solar’s Series 7 photovoltaic (PV) solar modules, customized for the Indian market.
Significance of the Facility
The manufacturing plant is home to India’s first solar PV recycling plant, which facilitates closed-loop semiconductor recovery for use in new modules. Additionally, the recycling plant retrieves other materials, including aluminum, glass, and laminates. The facility stands out as the world’s premier net-zero water withdrawal solar manufacturing facility, given its location in an area with heightened baseline water stress. It is entirely reliant on tertiary-treated reverse osmosis water from the city’s sewage treatment plant, ensuring zero wastewater discharge. Moreover, the modules produced here exhibit just one-fourth of the carbon and water footprint compared to the crystalline silicon solar panels made in China.
First Solar’s Prospects in India’s Solar Market
The future appears bright for First Solar in India’s solar market, fueled by a surge in investment and deployment of solar plants, coupled with favorable government policies driving development. The company has gained steady traction in this region, kickstarting production of Series 7 modules at its inaugural manufacturing facility in the country. The facility showcases a robust 12,000 module/day capability and an impressive top module wattage of 535.
The company anticipates significant gains from such initiatives, in line with the recent projection by Mordor Intelligence, foreseeing India’s solar market to reach 195.11 GW by 2029 at a CAGR of 19.8% during 2024-2029. Looking ahead, First Solar envisions total opportunities of 10.9 GW in India’s solar market, including 3.8 GW of mid-to-late-stage opportunities. Additionally, the company has inked a 15-year power purchase agreement with Cleantech Solar to add 150 megawatts (MW) of PV solar to its portfolio, along with 16.8 MW of wind capacity in Tamil Nadu.
Peer Moves
Other key players in the industry, such as Enphase Energy ENPH and Canadian Solar CSIQ, are also expanding their footprint in India. Enphase Energy already operates a manufacturing facility in Chennai, Tamil Nadu. On October 16, 2023, the company began shipping IQ8 Microinverters, with peak output AC power of 480 watts, in India. Meanwhile, Canadian Solar is a dominant presence in the Asia-Pacific region, contributing 12% to total revenues in the third quarter of 2023.
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). Another top-ranked stock in the same industry is Nextracker Inc. NXT, 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, Inc. (FSLR) : Free Stock Analysis Report
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