First Solar, a solar-panel manufacturer based in Arizona, has hit the jackpot in the U.S. green-energy push. The company is expected to receive as much as $710 million this year from subsidies provided by the U.S. government to encourage domestic renewables production. This accounts for nearly 90% of the company’s forecast operating profit, with estimates suggesting that the incentives could be worth over $10 billion for First Solar over the next decade.
First Solar, an Arizona-based solar-panel manufacturer, is experiencing remarkable success as a primary beneficiary of the U.S.’s green-energy push. The company is projected to receive up to $710 million this year, constituting nearly 90% of their expected operating profit, through government subsidies aimed at promoting domestic renewables production. Experts estimate that over the next decade, these incentives could surpass $10 billion for First Solar.
Thanks to government policies favoring clean-energy developers purchasing American-made components, First Solar is set to capture approximately 60% of the U.S. market for large-scale solar installations this year. Despite a series of earnings disappointments, the company’s shares have more than doubled to $208.40 since the beginning of 2022. Moreover, following the passage of the Inflation Reduction Act in August of last year, First Solar has committed to investing over $2.8 billion in new manufacturing and research facilities in the U.S., including a recently announced factory.
First Solar has become a leader in the U.S. clean-energy market for large-scale solar installations with as much as 60% of market share expected this year. Government policies that push clean-energy developers to buy more made-in-America components have helped the company secure its position. Additionally, the Biden administration’s focus on energy and climate legislation has put First Solar in the spotlight. The clean-energy subsidies from the government have been a game-changer for the company, allowing it to invest millions in new manufacturing and research facilities in the U.S.
Although First Solar’s shares have more than doubled in value since the beginning of 2022, the company has had a string of earnings disappointments during this period. However, despite this, First Solar has promised to plow more than $2.8 billion into new manufacturing and research facilities in the U.S. since the passage of the Inflation Reduction Act last August. This includes a new factory announced on Thursday. In light of this, it is evident that the clean-energy subsidies have been instrumental in helping the company invest in new facilities in the country.
According to an analyst, the incentives provided by the U.S. government could be worth more than $10 billion for First Solar over the next decade. This is a tremendous amount of money, and other green-energy companies are actively trying to get on the gravy train. The government’s focus on clean energy and reducing carbon emissions is not going away anytime soon, suggesting that other companies could also be beneficiaries like First Solar. However, it is crucial to remember that subsidies from the government are only part of the picture and that companies must also focus on innovation, improving their technology, and reducing costs to remain competitive.
First Solar has been at the forefront of green energy in the U.S. thanks to the government’s focus on climate legislation and clean-energy subsidies. The company has received nearly 90% of its forecast operating profit from these subsidies, allowing it to invest billions in new facilities in the U.S. Other green-energy companies are trying to get on the gravy train, but it is vital to keep in mind that subsidies are only one part of the picture. Companies must continue to focus on innovation, improving their technology, and reducing costs to stay competitive. Nonetheless, the government’s focus on clean energy and reducing carbon emissions suggests that First Solar and other green-energy companies can expect continued growth and success in the future.