A major investment in the production of solar panels in the United States has been announced by First Solar Inc. (NASDAQ: FSLR). The US Department of Energy backed First Solar’s decision to relocate panel production from China, and the company is poised to take the lead in residential solar.
A plant built by First Solar will be the largest plant outside of China. The plant will cost $680 million to build. In the future, the Ohio plant will produce panels with a total capacity of over 3 GW. Plant operations could begin as early as 2023. The company anticipates that its total annual production will reach 6 GW by 2025, half of what the US solar market can provide. Consequently, there will be rapid changes in the global solar market.
First Solar Inc. (NASDAQ: FSLR) will automate its plants to the maximum extent possible (only 500 workers are announced) to produce panels that meet the requirements of large-scale solar power plants. Furthermore, the plant will not use polycrystalline silicon. China controls 70% of the market for this raw material for panels.
First Solar Inc. has announced a record order book and is confident that the demand for new products will remain strong. Additionally, the company expects assistance and benefits from the US government, and that assistance is almost inevitable. A proposal for tax breaks from First Solar is already underway to drive the development of solar energy in the United States.
In Thursday’s session, shares of First Solar Inc. (FSLR) were trading at $80.40, up 4.67%. First Solar Inc.’s stock finished last trading session at $76.81. Stock volume was 3.57 million shares, above the average daily volume of 2.2 million shares recorded during the previous 50 days. The shares of First Solar Inc. rose 6.67% last week and gained 11.84% last month. The stock price has fallen by -0.77% in the past three months and has fallen by -18.72 percent in the current year. Furthermore, the stock is trading at a price-to-earnings ratio of 16.61. Additionally, its price to sales ratio stands at 2.85.