First Solar, Inc. is a publicly-held U.S. energy company in the solar sector. It manufactures photovoltaic solar modules using a
thin filmThin films are thin material layers ranging from fractions of a nanometre to several micrometres in thickness. Electronic semiconductor devices and optical coatings are the main applications benefiting from thin film construction....
semiconductorA semiconductor is a material that has an electrical resistivity between that of a conductor and an insulator, that is, generally in the range 10
3 Siemens/cm to 10
−8 S/cm. Devices made from semiconductor materials are the foundation of modern electronics, including radio,...
process based on
CdTeCadmium telluride is a crystalline compound formed from cadmium and tellurium. It is used as an infrared optical window and a solar cell material. It is usually sandwiched with cadmium sulfide to form a p-n junction photovoltaic solar cell. Typically, CdTe cells use a n-i-p...
, to produce photovoltaic modules. It is the largest manufacturer of thin-film cells in the world, with production capacity expected to reach over 1 GW per year by the end of 2009.
The process uses different materials than most other solar cells, is more economical, tolerant of a wide range of conditions, but less efficient at converting light to electricity
First Solar was founded as Solar Cells Incorporated by
Harold McMasterHarold A. McMaster was an inventor with over 100 patents and entrepreneur who founded four companies. Fortune Magazine called him "The Glass Genius". He also worked on developing commercial-scale solar cell technology, and developed a new type of engine, the "McMaster Rotary Engine."McMaster was...
and in 1999 was purchased by True North Partners LLC, which rebranded the company as First Solar.
First Solar, Inc. is a publicly-held U.S. energy company in the solar sector. It manufactures photovoltaic solar modules using a
thin filmThin films are thin material layers ranging from fractions of a nanometre to several micrometres in thickness. Electronic semiconductor devices and optical coatings are the main applications benefiting from thin film construction....
semiconductorA semiconductor is a material that has an electrical resistivity between that of a conductor and an insulator, that is, generally in the range 10
3 Siemens/cm to 10
−8 S/cm. Devices made from semiconductor materials are the foundation of modern electronics, including radio,...
process based on
CdTeCadmium telluride is a crystalline compound formed from cadmium and tellurium. It is used as an infrared optical window and a solar cell material. It is usually sandwiched with cadmium sulfide to form a p-n junction photovoltaic solar cell. Typically, CdTe cells use a n-i-p...
, to produce photovoltaic modules. It is the largest manufacturer of thin-film cells in the world, with production capacity expected to reach over 1 GW per year by the end of 2009.
The process uses different materials than most other solar cells, is more economical, tolerant of a wide range of conditions, but less efficient at converting light to electricity
First Solar was founded as Solar Cells Incorporated by
Harold McMasterHarold A. McMaster was an inventor with over 100 patents and entrepreneur who founded four companies. Fortune Magazine called him "The Glass Genius". He also worked on developing commercial-scale solar cell technology, and developed a new type of engine, the "McMaster Rotary Engine."McMaster was...
and in 1999 was purchased by True North Partners LLC, which rebranded the company as First Solar.
Technology
The company has reached an average conversion efficiency of 10.7 percent using CdTe on glass. For details on the technology, see
Cadmium Telluride PhotovoltaicsCadmium telluride photovoltaics describes a photovoltaic technology that is based on the use of cadmium telluride thin film, a semiconductor layer designed to absorb and convert sunlight into electricity...
.
Corporate History
Glasstech Solar was founded by inventor/entrepreneur
Harold McMasterHarold A. McMaster was an inventor with over 100 patents and entrepreneur who founded four companies. Fortune Magazine called him "The Glass Genius". He also worked on developing commercial-scale solar cell technology, and developed a new type of engine, the "McMaster Rotary Engine."McMaster was...
in 1984. McMaster envisioned the opportunity for low cost thin films made on a large scale. After trying amorphous silicon, he shifted to CdTe at the urging of Jim Nolan and founded Solar Cells inc. (SCI) in 1990. In February 1999, McMaster sold the company to True North Partners, an investment arm of the
Walton familyThe Walton Family is one of the richest families in the world, their wealth inherited from Bud and Sam Walton, founders of the world's largest retailer, Wal-Mart. The five most prominent members The Walton Family is one of the richest families in the world, their wealth inherited from Bud and Sam...
, owners of Wal-Mart.
John T. WaltonJohn Thomas Walton was a decorated United States war veteran and a son of Wal-Mart founder Sam Walton. He was also the chairman of True North Partners, a venture capital firm....
joined the Board of the new company, and Mike Ahearn of True North became the CEO of the newly minted First Solar.
In its early years First Solar suffered setbacks, and initial module efficiencies were modest, about 7%. Commercial product became available in 2002. But production did not reach 25 MW until 2005. The company built an additional line in
Perrysburg, OhioPerrysburg is a city in Wood County, Ohio, United States, along the Maumee River. The population was 17,042 according to the 2007 census. If combined with the adjacent Perrysburg Township, it would have a total population of 30,747 making it the most populous city in Wood County. It is a suburb of...
, then four lines in Germany. . In 2006 First Solar reached 75 MW of annual production and announced a further 16 lines in Malaysia. . As of Q3 2008, First Solar is producing at nearly half a gigawatt annual rate. and in 2006 and 2007 was among the largest PV module manufacturers in the world.
Research and development takes place at the Ohio facility, and headquarters are in
Tempe-Places:* Vale of Tempe, Greece* Tempe, Arizona, United States* Tempe, New South Wales, a suburb in Sydney, Australia* Lake Tempe, Indonesia* Tempe, Bloemfontein, South Africa, home of the 44 Parachute Regiment...
,
ArizonaThe State of Arizona is a state located in the southwestern region of the United States. The capital and largest city is Phoenix. The second largest city is Tucson, followed in size by the four Phoenix metropolitan area cities of Mesa, Glendale, Chandler, and Scottsdale.Arizona was the 48th and...
.
Market History
The company sells its products to solar project developers,
system integratorA systems integrator is a person or company that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together, a practice known as System Integration...
s, and public utilities. Sales have been primarily in
GermanyGermany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium,...
because of strong
incentives for solarFinancial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics . A government may offer incentives in order to encourage the PV industry to achieve the economies of scale needed to compete...
enacted in the German Renewable Energy Sources Act (EEG) of 2000 (cp.
Solar power in GermanyGermany is the world's top photovoltaics installer, accounting for almost half of the global solar power market in 2007. The country has a feed-in tariff for renewable electricity, which requires utilities to pay customers a guaranteed rate for any solar power they feed into the grid...
). With the extension of the Investment Tax Credit in the United States, sales in the U.S. are expected to increase, as evidenced by First Solar's October 2008 partnership with
SolarCitySolarCity is a provider of solar energy system design, financing, installation and related services based in Foster City, California. SolarCity was founded in July 2006 by brothers Peter and Lyndon Rive, including a $10M investment by entrepreneur Elon Musk , and is the #1 provider of residential...
. In a five-year deal, First Solar has agreed to supply 100 megawatts of solar modules to SolarCity, the largest residential installer in the United States according to SolarCity CEO
Lyndon RiveLyndon Rive is a green energy leader and the CEO of SolarCity. He has trumpeted SolarCity's use of First Solar panels for residential and business installations since the beginning of 2009. He has also said that residential and small business customers will turn to branded installation companies...
..
First Solar has a backlog of long-term contracts totaling approximately $6.3 billion in sales. Among the 12 European project developers and system integrators, customers include Blitzstrom GmbH, Colexon Energy AG (previously Reinecke + Pohl),
ConergyConergy AG was founded in 1998 by the former chairman of the board Hans-Martin Rüter. With a turnover of 706 Million euros in 2007, and employing more than 2000 staff currently, Conergy is one of the leading solar energy companies in Europe...
AG, Gehrlicher Umweltschonende Energiesysteme GmbH, Juwi Solar GmbH and
Phoenix SolarPhoenix Solar AG is a German photovoltaics company involved in the systems integration business. Specifically, the company designs, builds and operates large photovoltaic power plants and is a specialist wholesaler of photovoltaic systems, solar modules and related equipment.- History :Phoenix...
AG. In 2007, each of these six accounted for between 10% and 23% of sales. In 2007, new contracts were negotiated with
EDF Energies NouvellesEDF Energies Nouvelles is a French renewable energy corporation, half owned by French electic utility Electricite de France. It was formed in 2004 from its predecessor SIIF Energies and was floated on the Paris stock exchange in 2006....
, Sechilienne-Sidec, Rio Energie, and Sun Edison. First Solar also expanded an existing contract with Juwi.
The manufacturing cost per watt reached $1.23 in 2007 and $1.08 in 2008. On February 24, 2009, the cost / watt broke the $1 barrier with 98 cents per watt. First Solar is contractually bound to reduce price per watt by 6.5% per year and plans to be competitive on an unsubsidized basis with retail electricity by 2010.
Production History
The company currently has 11 production lines with 528 megawatts of manufacturing capacity. Each line has a 48 megawatt capacity and another four lines in First Solar Malaysia Plant 2 are expected to go online by the end of 2008.
In April 2007, First Solar announced the construction of an additional manufacturing plant in
KulimKulim is a major town and district in Kedah, Malaysia. It is the main industrial area in Kedah and the site of Intel Corporation regional factory and R&D center in Malaysia. It also houses lots of multinational companies in its very own Kulim hi-tech industrial park...
Hi-Tech Park,
MalaysiaMalaysia is a country in Southeast Asia that consists of thirteen states and three Federal Territories, with a total landmass of . The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government. The population stands at over 28 million inhabitants...
with an annual production nameplate rating of 176 megawatts, representing an investment of approximately $150 million. The additional production capacity of the new plant is scheduled to come on line at the end of 2008. As of the first quarter of 2008, 3 additional plants were begun at the Kulim site, each with 4 production lines. By the end of 2009 when all come on line, First Solar will have 23
production lineA production line is a set of sequential operations established in a factory whereby materials are put through a refining process to produce an end-product that is suitable for onward consumption; or components are assembled to make a finished article....
s and a capacity of approximately 1012 megawatts per year. In October 2008, First Solar broke ground on another expansion of its Perrysburg, Ohio facility and is adding another 48 MW line. The expansion, expected to come online in mid-CY 2010 will bring First Solar's global annual production capacity to 1152 megawatts.
There is also a manufacturing locations in Frankfurt (Oder), Germany.
| Plant Name |
2005 Capacity |
2006 Capacity |
2007 Capacity |
2008 Capacity |
2009 Capacity |
2010 Capacity |
| Ohio Base Plant |
25 MW |
33 MW |
44 MW |
48 MW |
48 MW |
48 MW |
| Ohio Expansion |
Construction |
66 MW |
88 MW |
96 MW |
96 MW |
96 MW |
| German Plant |
- |
Construction |
176 MW |
192 MW |
192 MW |
192 MW |
| Malaysia 1 |
- |
- |
Construction |
192 MW |
192 MW |
192 MW |
| Malaysia 2 |
- |
- |
Construction |
~192 MW |
192 MW |
192 MW |
| Malaysia 3 |
- |
- |
Construction |
Ramp-Up |
192 MW |
192 MW |
| Malaysia 4 |
- |
- |
- |
Construction |
192 MW |
192 MW |
| Ohio Expansion 2 |
- |
- |
- |
- |
- |
48 MW |
| Total Capacity |
25 MW |
99 MW |
308 MW |
~720 MW |
1109 MW |
1152 MW |
(Source:
First Solar Corporate Overview /
First Solar Q3 2008 Conference Call)
Market Performance
According to the company's third quarter 2008 financial results, earnings per share were $1.20 and Q3 revenue totaled $348.7 million. The market had predicted Q3 earnings per share of $1.02, and revenue of $340.93.
As quoted in a November 2008 article from
Fortune Magazine , Jenny Chase, a senior analyst with New Energy Finance, says First Solar is "Run by managers who are fanatics about meeting goals and avoiding unnecessary costs, First Solar routinely blows away both its own and the Street's targets…They come in at over 100% of projected capacity." While much of the credit for First Solar's success can attributed to its management, the low cost of its solar modules has been the key to its performance.
"Manufacturing cost per watt for the third quarter was $1.08, with a gross margin of 56.1%. Start-ups in other technologies, e.g.,
HelioVoltHelioVolt Corporation is a solar energy company specializing in Copper Indium Gallium Selenide thin film solar panel technology. The company has attracted over $130 million in investment...
in CIGS, often claim one dollar per watt and lower costs but have no production or demonstrated products. First Solar is expected to continue to lower costs.
First Solar's use of cadmium telluride over silicon technologies have allowed it to achieve this significantly lower price point, especially compared to crystalline-silicon PV which averages $2.90 per watt.
Grid parity
First Solar has indicated that its manufacturing cost has fallen in 2009 to 93 cents per watt, down 5% in three months and down 28% in a year. By 2014, it expects to drive down cost per watt to make solar modules to fall to between 52 and 63 cents. The biggest driver of the lower costs is better efficiency.
Installations
In a July 24 2008 press release from First Solar, the thin-film manufacturer stated that "at the end of 2007, over 300 MW of First Solar PV modules had been installed worldwide." Below is a list of several recent installations:
- Since 16 October 2008, Germany's largest thin-film pitched roof system, constructed by Riedel Recycling, has been in operation and producing solar power in Moers near Duisburg
Duisburg is a German city in the western part of the Ruhr Area in North Rhine-Westphalia. It is an independent metropolitan borough within Regierungsbezirk Düsseldorf...
. Over eleven thousand cadmium telluride modules, from First Solar, deliver a total of 837 kW .
- First Solar recently completed a 2.4 MW rooftop installation as part of Southern California Edison
Southern California Edison , the largest subsidiary of Edison International , is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity...
program to install 250 MW of rooftop solar panels throughout Southern California over by 2013.
- First Solar announced a 7.5 MW system to be installed in Blythe, CA, where the California Public Utilities Commission
The California Public Utilities Commission is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, telecommunications, natural gas and water companies...
has accepted a 12 ¢/kWh power purchase agreement with First Solar (after the application of all incentives).
- Construction of a 10 MW plant in the Nevada desert began in July 2008. http://investor.firstsolar.com/releasedetail.cfm?ReleaseID=324202 http://news.cnet.com/8301-11128_3-9998606-54.htmlThe plant will be expanded in 2009-2010 to over 40 MW total capacity. First Solar is partnering with Sempra Generation, which will own and operate the PV power-plant, being built next to their natural gas plant. Cost installed will be among the lowest ever, approximately 3.50 dollars per watt.
- Stadtwerke Trier (SWT) in Trier
Trier is a city in Germany on the banks of the Moselle River. It is the oldest city in Germany, founded in or before 16 BC. Trier is not the only city claiming to be Germany's oldest, but it is the only one that bases this assertion on having the longest history as a city, as opposed to a mere...
, Germany (the plant is expected to produce over 9 GWh annually)
- A 40 MW system is being installed by juwi group in Waldpolenz Solar Park
Waldpolenz Solar Park, which is the world’s largest thin-film photovoltaic power system, was built by German developer and operator Juwi at a former military air base to the east of Leipzig in Germany. The power plant is a 40 MW solar power system using state-of-the-art thin film technology, and...
, Germany. At the time of its announcement, it was both the largest planned and lowest cost PV system in the world. The price of 3.25 euros translated then (when the euro was equal to US$1.3) to $4.2 per installed watt.
- SolarCity
SolarCity is a provider of solar energy system design, financing, installation and related services based in Foster City, California. SolarCity was founded in July 2006 by brothers Peter and Lyndon Rive, including a $10M investment by entrepreneur Elon Musk , and is the #1 provider of residential...
is using First Solar thin film technology in personal residential installations. More than 60 percent of their customers are getting First Solar systems in 2009 in both California and Arizona according to SolarCity CEO Lyndon RiveLyndon Rive is a green energy leader and the CEO of SolarCity. He has trumpeted SolarCity's use of First Solar panels for residential and business installations since the beginning of 2009. He has also said that residential and small business customers will turn to branded installation companies...
.
- September 8, 2009 - initial approval from the Chinese government for an installation north of the Great Wall
See also
- Cadmium telluride photovoltaics
Cadmium telluride photovoltaics describes a photovoltaic technology that is based on the use of cadmium telluride thin film, a semiconductor layer designed to absorb and convert sunlight into electricity...
.
- Copper indium gallium selenide
"Copper indium selenide" redirects here.Copper indium gallium selenide is a I-III-VI
2 compound semiconductor material composed of copper, indium, gallium, and selenium...
(CIGSCIGS may refer to:* Chief of the Imperial General Staff, a pre-1964 military position in the British Army* Copper indium gallium selenide , a semiconductor material for solar cells...
).
- International Electrotechnical Commission
The International Electrotechnical Commission is a not-for-profit, non-governmental international standards organization that prepares and publishes International Standards for all electrical, electronic and related technologies – collectively known as "electrotechnology"...
(IECIEC may refer to:In education:* International Education Centre* Information, Education, and Communication* International Electrotechnical Commission - An international standards organization dealing with electrical, electronic and related technologies.* Institut d'Estudis Catalans, Catalan Studies...
).
- Renewable energy companies on the stock exchange.
- Nanosolar
Nanosolar is a developer of solar power technology. Based in San Jose, CA, Nanosolar has developed and commercialized a low-cost printable solar cell manufacturing process...
.
- GroupSat Solar.
- Photovoltaic power stations.
- Prometheus Institute.
- Sharp Solar
Sharp Solar produces both single and multi-crystalline silicon solar cells and for some years has been the world's leading manufacturer of photovoltaic modules. Sharp's solar cells are used for many applications, from satellites to lighthouses, and industrial applications to residential use. ...
.
- SolarCity
SolarCity is a provider of solar energy system design, financing, installation and related services based in Foster City, California. SolarCity was founded in July 2006 by brothers Peter and Lyndon Rive, including a $10M investment by entrepreneur Elon Musk , and is the #1 provider of residential...
(First Solar leader)
- Solar power in Germany
Germany is the world's top photovoltaics installer, accounting for almost half of the global solar power market in 2007. The country has a feed-in tariff for renewable electricity, which requires utilities to pay customers a guaranteed rate for any solar power they feed into the grid...
.
- Underwriters Laboratories
Underwriters Laboratories® Inc. is an independent product safety certification organization. Based in Northbrook, Illinois, UL develops standards and test procedures for products, materials, components, assemblies, tools and equipment, chiefly dealing with product safety...
(ULUl may refer to:* Ul , a lunar deity in Vanuatuan mythology* Ul , a Portuguese freguesia in the Oliveira de Azemeis municipality* 3271 Ul, an asteroidUL may also refer to:* Underwriters Laboratories, U.S...
).
- First Solar at Wikinvest
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