It
is the second time in the past year that the top U.S. panel
maker has announced a major expansion of its domestic
manufacturing footprint. President Joe Biden's Inflation
Reduction Act, a law passed last year that incentivizes
homegrown production of clean energy equipment, is underpinning
a boom in solar factory investments.
"By expanding America's solar manufacturing base, and the value
chains that support it, we are working to ensure that the U.S.
enters the next decade in a position of strength, fully capable
of producing the technology it needs to complete its transition
to a sustainable energy future," First Solar Chief Executive
Mark Widmar said in a statement.
The new 3.5 gigawatt (GW) factory will increase First Solar's
U.S. manufacturing capacity by a third to 14 GW, the Tempe,
Arizona company said in a statement.
It has yet to select a location for the factory, which will
begin production in 2026 and create 700 jobs. First Solar
currently produces panels in Ohio and will open an Alabama
facility in 2025. It also has operations overseas in Malaysia
and Vietnam.
U.S. solar project developers have flocked to First Solar's
cadmium telluride products in part because the technology does
not rely on polysilicon, a raw material primarily made in China
and used in the vast majority of panels. First Solar has an
order backlog of 78 GW, the company said.
Under the IRA, projects that use equipment made in the United
States can qualify for a bonus tax credit worth 10% of the
facility's cost. The law seeks to reduce the nation's reliance
on Chinese-made products.
First Solar said the Series 7 panels it will produce at the new
facility will be made with 100% U.S. components as defined under
the Treasury Department's rules for the IRA tax credits.
The White House applauded the announcement.
"Today's announcement by First Solar, a proud American company,
represents another huge investment in American manufacturing and
building our supply chains here at home - that's what Bidenomics
is all about," Biden said in a statement.
(Reporting by Nichola Groom; editing by Diane Craft)
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