First Solar Inc. announced on Tuesday that it will invest $1.2 billion to expand its solar panel manufacturing operations in the United States, creating hundreds of jobs and a new plant in the Southeast.
It is among the first significant business investments announced following the Inflation Reduction Act (IRA). The IRA is a $430 billion policy package intended at tackling climate change that was put into law this month by President Joe Biden. It offers new tax benefits for solar items created in the United States.
It’s also a U-turn for the biggest solar panel maker in the U.S., which said earlier this summer that it was unlikely to build its next factory in the U.S. because there wasn’t enough support from the government.
First Solar has announced that it will invest $1 billion in a new Southeast facility that will open in 2025. The business intends to choose the location later this year.
Additionally, it will spend $185 million to boost manufacturing in Ohio, where it now has two plants and is constructing a third.
The increases are anticipated to result in the creation of 850 jobs, bringing the company’s total U.S. employment to 3000.
First Solar is the largest developer of utility-scale solar panels in the United States
On a teleconference with reporters, CEO Mark Widmar stated, “We believe that with the IRA, we have a permanent industrial policy basis, one that we have long advocated for, that is comprehensive and will enable the solar sector as a whole.”
Since July 31, when Senate Majority Leader Chuck Schumer, D-New York, and Sen. Joe Manchin, D-West Virginia, announced their unexpected agreement on climate, health care, and tax bill, First Solar shares have increased by 65 percent.
The legislation, which was rapidly approved by the House and Senate and signed into law by President Joe Biden, is advantageous to First Solar in a number of ways, including the production tax credit for domestic producers. First Solar is the largest developer of utility-scale solar panels in the United States.
The unveiling of the project comes as First Solar struggles to keep up with demand growth. First Solar stated on its second quarter earnings call that it is sold out through 2025, having a backlog of 44 GW.
