First Solar, Inc.
First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, India, Chile, and internationally. The company manufactures and sells PV solar modules with thin film semiconductor technology that provides conventional crystalline silicon PV solar modules. It also designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. The company serves system developers, independent power producers, utilities, commercial and industrial companies, large corporate energy buyers, and other system owners and operators. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Phoenix, Arizona.
What does it do?
First Solar makes solar panels — but not the kind most people picture. Instead of the standard silicon panels you see on rooftops, they use a different technology called thin-film, which uses a material called cadmium telluride to turn sunlight into electricity. Think of it like choosing a different recipe to bake the same cake: the end result is electricity, but the ingredients and process are unique to First Solar. They sell these panels to large-scale solar farm developers and power companies, mostly in the US, who use them to build utility-scale solar plants that power thousands of homes.
First Solar is one of the only major solar panel manufacturers based in the United States, which makes it a direct beneficiary of the push to bring clean energy manufacturing back to American soil — a priority backed by billions in government subsidies through the Inflation Reduction Act. At a moment when the world is trying to reduce dependence on Chinese-made solar panels, First Solar's domestic manufacturing footprint makes it strategically important in a way few solar companies can claim. Investors see it as the rare solar stock with a genuine 'made in America' moat.
How does it make money?
First Solar makes money almost entirely by manufacturing and selling its thin-film solar modules to large energy developers and independent power producers who build solar farms. Revenue hit $5.2 billion in the latest year, up from $4.2 billion the prior year — a 24% jump — driven by strong demand and higher selling prices. A key part of their financial story is the manufacturing tax credit from the Inflation Reduction Act, which pays First Solar a cash subsidy for every panel they produce in the US, directly boosting profit margins. Net income reached $1.5 billion, meaning roughly 29 cents of every dollar in revenue turned into profit — a healthy number for a manufacturer.
Why do investors care?
The growth story here is straightforward: the world needs more solar energy, the US government is paying companies to build it domestically, and First Solar is one of very few players set up to capture that tailwind. Their order book has been heavily booked out years in advance, which gives investors rare visibility into future revenue. For the thesis to work, the Inflation Reduction Act subsidies need to stay intact under future administrations, and First Solar needs to keep scaling its new factories on time and on budget. If they can do both, the earnings growth runway is long.
Deep Dive
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