First Solar Wraps Up Sale Of 2024 Advanced Manufacturing Tax Credits

First Solar, Inc. announced the final sale amount of Section 45X Advanced Manufacturing Production tax credits earned from producing and selling solar modules in the U.S. in 2024. This transaction was first disclosed on December 11, 2024. First Solar sold $857 million in tax credits through two separate agreements announced in December 2024.

A third party agreed to buy the credits at a rate of $0.955 per $1.00. The deal included a fixed portion of $645 million, paid in two installments on December 6 and December 30, 2024. Additionally, a variable portion of $212 million is expected to be finalized by February 28, 2025. Once the transaction is complete, First Solar anticipates receiving about $819 million in total cash proceeds.

Mark Widmar, chief executive officer, First Solar, stated “This is a case of the Section 45X tax credits working exactly as they were intended, creating and retaining billions in economic value in our country and supporting tens of thousands of American jobs. The value of the tax credits is directly tied to the volume of solar panels produced at our facilities in Ohio and Alabama for deployment in power generation projects across America, the highest volume we’ve produced in the US since we began manufacturing in 2002.”

Alex Bradley, chief financial officer, First Solar, said “This transaction strengthens our balance sheet even as we continue to invest in our US manufacturing capacity and research and development infrastructure, which are crucial to our growth. As it relates to the 2024 financial year, we expect a pre-tax impact to earnings of approximately $39 million and a post-tax impact to earnings of approximately $45 million. This is expected to reduce our diluted earnings by approximately $0.42 per share for the year.”

First Solar earns tax credits from selling photovoltaic (PV) solar modules made in 2024 at its U.S. manufacturing facilities. These include three factories in Ohio and a new plant in Alabama. The company’s fully integrated production process turns a sheet of glass into a complete solar panel in about four hours, making thin film wafers, cells, and modules in one seamless operation.

As the leading solar technology and manufacturing company in the U.S., First Solar has been producing domestically since 2002. It is the largest solar manufacturer in the Western Hemisphere and plans to reach 14 gigawatts of annual U.S. manufacturing capacity by 2026. By then, it expects to support over 30,000 jobs nationwide, generating nearly $2.8 billion in labor income, according to a study by the University of Louisiana at Lafayette. Each of its factories employs around 800 people, with an average manufacturing salary of $80,000 per year.

First Solar’s operations also create jobs across the country, supporting workers in various industries. This includes miners extracting soda ash in Wyoming, silica in Michigan, and copper in Utah; steelworkers in Alabama, Louisiana, and Ohio; glass workers in Illinois, Ohio, and Pennsylvania; woodworkers in Indiana; as well as truckers, railroad workers, and many others who contribute to the solar supply chain.