13.3 C
Munich
Tuesday, June 15, 2021

First Solar to Build New Solar-Panel Factory in Ohio

Must read

What’s new in Apple’s iOS 15 for iPhones, Tech News News & Top Stories

SINGAPORE (HARDWAREZONE) - At Apple's annual worldwide developer conference (WWDC) last week, the iPhone maker started the online event with a banger - the...

News Wrap: Israel's Naftali Bennett officially unseats Benjamin Netanyahu

In our news wrap Monday, new Israeli Prime Minister Naftali Bennett formally took office, ending Benjamin Netanyahu's 12-year rule. The U.S. neared 600,000 deaths...

3 issues that will test US partnerships with EU allies

President Joe Biden will meet European Union leaders in Brussels, Belgium Tuesday. After the fractious relationship between former President Trump and many of those...

WASHINGTON—The biggest American-owned solar-panel maker is set to announce plans Wednesday to invest $680 million in a new Ohio factory, in one of the largest bets on domestic solar manufacturing since China began dominating the industry a decade ago.

First Solar Inc.,

FSLR 1.58%

based in Tempe, Ariz., said it plans to begin construction after necessary permits and local incentives have been secured and is aiming to open the plant early in 2023.

The factory, which would be the company’s third in Ohio, is expected to initially produce enough solar panels to produce 3 gigawatts of power annually, or enough to power about 570,000 homes.

Combined, the three plants by 2025 would produce panels that could generate 6 gigawatts of power annually, or a little more than half of all solar panels the company estimates will be produced annually in the U.S. by then, company chief executive

Mark Widmar

said.

Mr. Widmar said the investment reflected the growth of the American market and what he viewed as bipartisan government commitment to encourage domestic manufacturing in alternative energy.

First Solar is the biggest American-owned solar-panel maker.



Photo:

Dustin Franz for The Wall Street Journal

The pandemic intensified concern about “overreliance on any one country” for imports in industries deemed essential, Mr. Widmar said.

President Biden has said he wants to make the U.S. electric grid carbon-free by 2035 and will seek to give the domestic industry a boost through federal government purchases of made-in-America equipment.

“The Administration is committed to its ambitious ‘Buy American’ goals and creating American-made products, including for solar technologies,” said a spokeswoman for the White House’s Office of Management and Budget.

Chinese firms have dominated the solar market since around 2011, knocking out U.S., European and Asian competitors who had a head start but lacked the large-scale government support and financing provided by Beijing and Chinese local governments.

The fierce Chinese competition pushed down solar panel prices and made solar power competitive with natural gas. Some economists say that has been a boon to consumers.

SHARE YOUR THOUGHTS

What is your outlook for the solar industry in the U.S.? Join the conversation below.

“It seems like it’s solar manufacturers vs. the people,” said

Nicholas Bloom,

an economist at Stanford University.

First Solar, one of the few American solar firms able to remain afloat, has specialized in building panels for large-scale installations in the desert. Chinese firms and others also built panels for the residential market.

Some environmental groups have objected to the mega projects, saying they harm desert ecology.

If planned correctly, the projects can help preserve desert animal life, Mr. Widmar said. “Wildlife emerges around them,” he said. “They can be a safe haven.”

First Solar recorded losses in five of the past 10 years, but has been profitable since 2020.

First Solar expects that its Ohio plants, including this one in Walbridge, will produce panels that could generate 6 gigawatts of power annually by 2025.



Photo:

Dustin Franz for The Wall Street Journal

The highly automated new factory is expected to employ 500 people. Currently First Solar employs about 1,600 people in the U.S. and 5,000 globally.

Even so, First Solar would remain a relatively small player in the expanding U.S. market, where imports have an 85% share, according to the energy consulting firm Wood Mackenzie.

After construction of the new First Solar factory, the company would still import 40% of its panels from its factories in Vietnam and Malaysia.

Mr. Widmar says the company wants to continue to expand U.S. production, which helps it save on freight costs and strengthen the company’s standing as an alternative to Chinese imports.

“We are the only ones to stand up to the onslaught of the Chinese,” Mr. Widmar said. “A lot of people doubt we are enduring; that’s the challenge.”

The company is banking on continued U.S. support through tax breaks and possibly renewing tariffs on imported Chinese panels, as well as growing domestic demand.

Solar generation has grown to about 4.3% of the nation’s electricity supply from 0.1% in 2010, according to

Scott Sklar,

a George Washington University energy expert.

First Solar shares rose 1.27% Tuesday, to $75.96. Shares are down about 25% this year.

Investors have been pouring more money than ever into renewable energies such as solar and wind. WSJ looks at how the pandemic, lower energy costs and global politics have driven the rally–and whether it can last. (Video from 12/31/20)

The Solar-Power Industry

More coverage of the solar sector, selected by the editors.

Write to Bob Davis at bob.davis@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

What’s new in Apple’s iOS 15 for iPhones, Tech News News & Top Stories

SINGAPORE (HARDWAREZONE) - At Apple's annual worldwide developer conference (WWDC) last week, the iPhone maker started the online event with a banger - the...

News Wrap: Israel's Naftali Bennett officially unseats Benjamin Netanyahu

In our news wrap Monday, new Israeli Prime Minister Naftali Bennett formally took office, ending Benjamin Netanyahu's 12-year rule. The U.S. neared 600,000 deaths...

3 issues that will test US partnerships with EU allies

President Joe Biden will meet European Union leaders in Brussels, Belgium Tuesday. After the fractious relationship between former President Trump and many of those...