First Solar continues surge in bookings with Energix 5GW module supply agreement

First Solar has reached a 5GW (on a direct-current basis) module supply agreement with Israel’s Energix Renewables for projects on three continents, boosting its order bookings by about 25GW since the landmark US climate law took effect last August.

Energix, based in Ramat Gan, east of Tel Aviv, will employ the ultra-low carbon thin film modules in projects under development in Israel, Poland, and US. Deliveries are scheduled to begin in 2026.

“As we grow our pipeline, we want a trusted partner that will not compromise on quality, its commitments, or principles, and that partner is First Solar,” said Asa Levinger, CEO of Energix.

The Inflation Reduction Act (IRA) provides a slew of federal tax credits to promote demand for utility-scale solar power and formation of a domestic manufacturing supply chain that is not reliant on China for components and materials such as polysilicon.

First Solar is, by far, the largest US supplier. Its modules are based on thin-film technology that features a layer of cadmium telluride (CdTe) semiconductor that is 3% the thickness of a human hair.

In contrast, the US solar industry predominately sources panels from Southeast Asia that use crystalline silicon technology.

First Solar will receive federal tax credits for qualifying manufactured components such as thin film PV cells, wafers, and module assembly, to supply the US projects.

Energix’s US projects will be eligible for investment tax credits worth a base 6% of capital investment but could increase to as much as 50% if various qualification criteria set in the climate law are met. They could alternatively receive tax credits over a decade tied to electric power sent to the grid.

The deal elevates Energix’s orders with First Solar to 8.5GW since 2017.

“This is another example of a large, sophisticated player choosing to de-risk its development portfolio by working with us,” said Georges Antoun, chief commercial officer at First Solar. He said Energix views First Solar as a trusted partner that provides “long-term pricing and supply certainty, which are rarities in the solar industry.”

Under the agreement, First Solar will process end-of-life modules from Energix projects using its recycling programme, which provides closed-loop semiconductor recovery for use in new modules, while also recovering other materials including aluminum, glass, and laminates.

Since President Joe Biden signed the climate law, First Solar has publicly announced 10 supply deals with leading solar developers including Areven, Capital Power, EDP Renewables, Intersect Power, Leeward Renewable Energy, Lightsource BP, and National Grid.

First Solar is investing approximately $1.3bn in expanding its US manufacturing footprint from over 6.5GW of annual nameplate capacity currently, to approximately 10.9GWDC by 2026.

In addition to the $1.1bn expected investment in a new 3.5GW facility in Alabama, the company has also embarked on a $185m expansion of its existing manufacturing footprint in Ohio.

The company also announced an investment of up to $370m for a dedicated research and development innovation center in Perrysburg, Ohio, which is expected to be completed in 2024.