First Solar is expanding its manufacturing capacity with new facilities in Alabama (expected to commence operations in the second half of 2024) and Louisiana (expected to commence operations in late 2025). These expansions, combined with existing plans, will increase manufacturing capacity by approximately 8 GW by 2026.

First Solar began commercial production of bifacial Series 6 Plus modules at certain manufacturing facilities in the U.S. in October 2023. The bifacial module features an innovative transparent back contact which, in addition to converting both front and rear side irradiance, allows infrared light to pass through rather than be absorbed as heat.

First Solar acquired Evolar AB in 2023, a European developer of perovskite technology. This acquisition is expected to accelerate the development of high efficiency multi-junction devices by integrating Evolar's know-how with First Solar's existing R&D capabilities, intellectual property portfolio, and expertise in developing and commercially scaling thin film PV products.

First Solar commenced production of Series 7 modules at its third manufacturing facility in Ohio and its first manufacturing facility in India during 2023. This brings the company's total installed nameplate production capacity to approximately 16.6 GW.

In December 2023, First Solar entered into an agreement with Fiserv, Inc. for the sale of $687.2 million of Section 45X tax credits generated during 2023 for aggregate cash proceeds of $659.7 million. This demonstrates management's ability to monetize tax benefits.

Management expects to produce between 15.6 GW and 16.0 GW of solar modules and sell between 15.6 GW and 16.3 GW in 2024. This demonstrates management's ability to execute on its production and sales plans.

The solar industry may experience periods of structural imbalance between global PV module supply and demand that result in periods of pricing volatility, which could have a material adverse effect on business, financial condition, and results of operations.

The modification, reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications, or the impact of other public policies, such as tariffs or other trade remedies imposed on solar cells and modules or related raw materials, could negatively impact demand and/or price levels for solar modules.

Several of key raw materials and components are either single-sourced or sourced from a limited number of suppliers, and their failure to perform could cause manufacturing delays and impair ability to deliver solar modules to customers in the required quality and quantities and at a price that is profitable.

Competition in solar markets globally and across the solar value chain is intense and could remain that way for an extended period of time. The solar industry may experience periods of structural imbalance between global PV module supply and demand that result in periods of pricing volatility.

First Solar continues to focus on strategies and points of differentiation, which include advanced module technology, manufacturing process and distributed manufacturing presence, R&D capabilities, the sustainability advantage of modules, and financial stability.

First Solar faces intense competition for sales of solar modules, which may result in reduced selling prices and loss of market share. Our primary source of competition is crystalline silicon module manufacturers, the majority of which are linked to China.

Failure to effectively manage module manufacturing production and selling costs, including costs related to raw materials and logistics services, could render solar modules uncompetitive and reduce net sales, profitability, and/or market share.

The company is focused on operational excellence and cost management. The company is focused on continually improving the wattage and energy yield of solar modules. The company also has R&D programs to improve module durability and manufacturing efficiencies, including throughput, volume ramp, and material cost reduction.

A disruption in our supply chain for CdTe, other key raw materials, or equipment could interrupt or impair our ability to manufacture solar modules and could adversely impact our profitability and long-term growth prospects.

First Solar continues to devote substantial resources to R&D efforts, which generally focus on continually improving the wattage and energy yield of solar modules. First Solar also has R&D programs to improve module durability and manufacturing efficiencies, including throughput, volume ramp, and material cost reduction.

First Solar continues to evaluate opportunities to develop and leverage other solar cell technologies in multi-junction applications consisting of CdTe, silicon, or other materials. For example, during 2023 First Solar acquired Evolar AB, a European developer of perovskite technology.

First Solar expects to complete its lead line implementation of the copper replacement (“CuRe”) program in the fourth quarter of 2024. The CuRe program is intended to improve our current semiconductor structure by replacing copper with certain other elements that are expected to enhance module performance.

The company is making capital investments in new manufacturing facilities and R&D. The company expects to spend between $1.7 billion and $1.9 billion for capital expenditures during 2024.

As of December 31, 2023, the company believes that its cash, cash equivalents, marketable securities, cash flows from operating activities, and contracts with customers for the future sale of solar modules will be sufficient to meet its working capital and capital expenditure needs for at least the next 12 months.

In December 2023, the company entered into an agreement with Fiserv, Inc. for the sale of $687.2 million of Section 45X tax credits the company generated during 2023 for aggregate cash proceeds of $659.7 million.

First Solar is committed to enhancing the social and economic benefits of its products and reducing its carbon footprint, even as it continues to increase its manufacturing capacity and module throughput.

First Solar's thin film modules are manufactured through an integrated process that uses less energy, water, and semiconductor material than conventional crystalline silicon modules. Accordingly, our modules provide an ecologically leading solution to address climate change, energy security, and water scarcity.

First Solar modules are designed for high-value recycling to maximize material recovery. Our recycling process recovers more than 90% of module materials for reuse, providing high quality secondary resources for new solar modules and other glass, rubber, and aluminum products.

The company expects certain financial benefits as a result of tax incentives provided by the Inflation Reduction Act of 2022. These benefits are expected to favorably impact the company's results of operations in future periods.

Energy markets are, by their nature, localized, with different factors impacting electricity generation and demand in a particular region or for a particular application. Accordingly, our business is evolving worldwide and is shaped by the varying ways in which our modules can provide compelling and economically viable solutions to energy needs in various markets.

The company is focusing on markets in which its CdTe solar modules provide certain advantages over conventional crystalline silicon solar modules, including high insolation climates in which our modules provide a superior temperature coefficient, humid environments in which our modules provide a superior spectral response, markets that favor the superior sustainability profile of our PV solar technology, and markets that value responsible sourcing through transparent supply chain reporting and ethical business practices.