First Solar Inks Deals to Sell Up to $700 Million in 2023 IRA Advanced Manufacturing Production Tax Credits

First Solar, Inc. has finalized two Tax Credit Transfer Agreements, selling $500 million and up to $200 million of 2023 IRA Advanced Manufacturing Production tax credits to Fiserv, Inc.

The agreements involve Fiserv paying $0.96 per $1 of tax credits to First Solar in H1 2024. Citigroup Global Markets, Inc. acts as the placement agent in this pioneering solar industry credit transfer. These credits stem from First Solar’s PV solar module sales in 2023, with the company’s integrated manufacturing facilities qualifying for Section 45X credits. First Solar plans substantial investments in new facilities and R&D, targeting 14 GW of US solar manufacturing capacity by 2026.

“This is the IRA delivering on its intent, which is to incentivize high value domestic manufacturing by providing manufacturers with the liquidity they need to reinvest in growth and innovation,” said Mark Widmar, chief executive officer, First Solar. “This agreement establishes an important precedent for the solar industry, confirming the marketability and value of Advanced Manufacturing Production tax credits.”

“The liquidity generated as a result of this transaction is expected to accelerate the timing of enhancing our cash position in the US through the monetization of the Section 45X credits, further strengthening our balance sheet and allowing us to continue investing in key aspects of growth, such as research and development,” added Alex Bradley, chief financial officer, First Solar. “As it relates to the 2023 financial year, we expect a pre- and post-tax impact of up to $28 million, resulting in a reduction of our diluted earnings of up to $0.26 per share for the year.”