Introduction
First Solar, a leading global provider of solar modules, has launched production in India with a $685 million investment. The new factory is expected to create over 3,000 jobs.
The investment is part of First Solar’s efforts to reduce its reliance on China for solar module production. China currently accounts for over 80% of the global solar module market.
By manufacturing modules in India, First Solar is hoping to diversify its supply chain and reduce its risk of exposure to political and economic instability in China.
Solar Manufacturing Gets a Boost in India
In a strategic move towards sustainable energy, India has implemented policies and incentives to stimulate domestic solar manufacturing. This initiative aims to reduce dependency on imports, lower production costs, and create employment opportunities.
By actively nurturing a robust manufacturing ecosystem, India is positioning itself to strengthen its position as a global leader in renewable energy production.
With the backing of ₹1,170 crore allocated through the Government of India’s Production Linked Incentive (PLI-2) program, First Solar is making a $684 million investment in a 3.5 GW facility dedicated to manufacturing ‘thin film’ modules.
Independence from China’s Silicon Value Chain
First Solar enjoys a significant advantage: it does not depend on the conventional method of producing its panels, primarily carried out in China using silicon.
In stark contrast, companies that follow the conventional silicon approach find themselves in a different scenario. They must rely on numerous suppliers for various parts, including wheels, gears, and pedals.
This reliance can impede progress and complicate cost management.
First Solar stands as virtually the sole global producer of thin film modules, employing a technology that involves the application of semiconductor materials onto a glass substrate. Notably, the semiconductor material they favor is Cadmium Telluride (CadTel), a choice that offers a demonstrated benefit in hot and humid environments and is recyclable.
Moreover, thanks to this distinctive approach, First Solar can effectively compete in the market. Additionally, they are capable of offering high-quality panels at exceptionally competitive prices. This positions them as a formidable presence in the renewable energy sector, solidifying their leadership in the field.
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First Solar Gains Big Support and High Demand
First Solar received a substantial boost for its major project when it secured a significant $500 million funding commitment from the US International Development Finance Corporation in December 2021.
This injection of funds serves as a substantial financial impetus, further bolstering the production of their solar panels.
Moreover, in addition to their recent accomplishments, First Solar has unveiled some genuinely extraordinary news: they have successfully secured commitments for nearly 72 gigawatts of their state-of-the-art modules!
Furthermore, to put it simply, this represents an overwhelmingly high demand for their products. What adds to the significance is that these orders aren’t short-term; they extend all the way through 2029. This unequivocally demonstrates the eagerness of numerous individuals and organizations to acquire and actively utilize First Solar’s advanced panels.
This recent development holds particular significance for First Solar on multiple fronts.
Furthermore, it not only indicates robust support and substantial demand for their offerings but also significantly strengthens their position in the renewable energy sector. With this commendable level of funding and the skyrocketing demand for their products, they undoubtedly find themselves in an exceptionally advantageous position to sustain their growth and continue to make a positive impact in the realm of renewable energy.
Conclusion
First Solar’s successful launch of production in India marks a pivotal moment for the country’s solar manufacturing sector. First Solar is actively poised to revolutionize the renewable energy landscape in India.
The company’s advanced modules, which incorporate Cadmium Telluride, stand poised to play a crucial role in India’s journey towards a greener future.
As the company actively scales and meets the surging demand for sustainable energy solutions, it positions itself to exert a lasting impact on the global renewable energy market.
