First Solar Inc. Announces Final Sale of $857 Million in Section 45X Tax Credits

First Solar, Inc. (Nasdaq: FSLR) has officially announced the completion of its sale of Section 45X Advanced Manufacturing Production Tax Credits, highlighting a significant financial milestone for the company. The final sale amount stands at a robust $857 million, a deal that is expected to enhance First Solar's position in the renewable energy sector and support its ongoing growth initiatives.

This announcement follows an earlier communication made on December 11, 2024, detailing the two Tax Credit Transfer Agreements with a third-party buyer at a price of $0.955 per $1.00 of tax credits. The agreements encompassed a fixed transaction of $645 million, which was paid in two installments on December 6 and December 30, 2024, and a variable transaction of $212 million, with completion anticipated by February 28, 2025. Upon finalizing this sale, First Solar anticipates receiving gross cash proceeds of approximately $819 million.

Mark Widmar, CEO of First Solar, expressed enthusiasm regarding the tax credits, stating, “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.” Widmar emphasized that the credits are directly linked to the increased production of solar panels at the company's facilities in Ohio and Alabama, which achieved the highest production volume since First Solar commenced manufacturing in the U.S. in 2002.

Alex Bradley, First Solar's CFO, added that this transaction would significantly fortify the company's balance sheet while continuing to invest in U.S. manufacturing capacity and research and development (R&D) infrastructure. For the 2024 financial year, Bradley projected a pre-tax impact to earnings of approximately $39 million and a post-tax impact of around $45 million, which would reduce diluted earnings by about $0.42 per share.

The tax credits arise from the production of photovoltaic (PV) solar modules at First Solar's U.S. manufacturing facilities, which include three factories in Ohio and a newly established facility in Alabama. The company utilizes a fully vertically integrated manufacturing process that transforms a sheet of glass into a fully functional solar panel in approximately four hours.

First Solar has been a U.S. manufacturer since 2002 and is recognized as the leading PV solar technology company in the country. It is also the only major global solar manufacturer headquartered in the U.S. The company is on track to ramp up its domestic energy technology manufacturing capacity to 14 gigawatts by 2026, which is projected to create over 30,000 direct, indirect, and induced jobs across the nation, generating nearly $2.8 billion in labor income, as per a study conducted by the University of Louisiana at Lafayette.

First Solar’s operations have a far-reaching economic impact, supporting a variety of industries and workers across the United States. The company’s supply chain includes soda ash miners in Wyoming, silica miners in Michigan, copper miners in Utah, and steelworkers across several states. Additionally, the company supports glass workers in Illinois, Ohio, and Pennsylvania, as well as woodworkers in Indiana, and a nationwide network of truckers and railroad workers.

First Solar, Inc. stands as America's leading PV solar technology and manufacturing company, focusing on providing a competitive and reliable solution for power generation needs through its advanced thin film PV technology. Developed in its R&D labs located in California and Ohio, First Solar's technology offers a high-performance alternative to conventional crystalline silicon PV modules.

For more information about First Solar, visit www.firstsolar.com.

As First Solar navigates the future, this sale of tax credits not only strengthens its financial position but also reinforces its commitment to expanding U.S. manufacturing capabilities and contributing to the green energy economy. The company's forward-looking statements highlight its optimism for continued growth and job creation, paving the way for a sustainable energy future.

Investors and stakeholders are encouraged to remain attentive to First Solar's developments as the company continues to leverage its strategic advantages in the renewable energy sector.