First Solar Announces Anticipated U.S. Capacity Expansion Following Recent Policy Incentives

On Aug. 30, First Solar announced it plans to invest up to $1.2 billion to add 4.4 gigawatts (GW) of additional U.S. solar manufacturing capacity. This announcement follows the recent passage of solar manufacturing incentives as part of the Inflation Reduction Act of 2022. As a result, we are reviewing our long-term outlook for First Solar. We anticipate raising our $100 per share fair value estimate by at least 20% in response. Our no-moat and positive moat trend ratings are unchanged.