First Solar 350 Mega Watt Project To Get Fast Track Approval

-3.98%
Downside
169
Market
162
Trefis
FSLR: First Solar logo
FSLR
First Solar

The U.S. government is looking to provide fast track approval for seven solar and wind projects including First Solar‘s (NASDAQ:FSLR) 350 MW Silver state south project in Nevada. [1] The move will be overseen by Office of Management and Budget and is aimed at making the permitting and review process for renewable projects more efficient. First Solar is depending on its systems development business to drive its revenues and profits as its panel manufacturing business is hit by a sharp drop in prices.

We have a $22 price estimate for First Solar, which is at a 5% premium to its current market price.

Click here for our full analysis of First Solar.

Relevant Articles
  1. Down 6% This Year, What’s Happening With First Solar Stock?
  2. Down 17% In The Last Six Months, Will First Solar Stock Recover Post Q4 Results?
  3. Up A Mere 15% In 2023, Is First Solar Stock Poised To Do Better In 2024?
  4. Down 30% From Highs Seen In May 2023, Where Is First Solar Stock Headed?
  5. Why Is The Hydrogen Theme Underperforming This Year?
  6. Why This Renewables Theme Is Underperforming In A Strong Market

Systems boost

First Solar presently has a 2.7 GW pipeline of solar projects under construction and recorded revenues from the sale of multiple projects in Q2 to boost its revenues and earnings in the period. (See: First Solar Reports Profits on Project Sales; Sustainability in Focus) Analysts have warned that the company must ramp up the development of projects to sustain the growth in business. Solar projects require multiple permits and the company reported a hiccup back in February when it had issues in obtaining a construction permit for the Antelope Valley Project, delaying its loan withdrawal from Department of Energy. The company had warned that issues with obtaining the construction permit could force it to repurchase the project from Exelon. The administration is now making the permit process more efficient, which could make things simpler for First Solar.

The Silver State South project is among the seven projects that have been selected for a fast track approval and could add 350 MW of capacity to First Solar’s project pipeline. Some of these projects could receive permits by the end of the year. The fast tracking is a seen as a part of a wider effort from the Obama administration to promote the use of federal land for the generation of renewable energy. [1] The efforts could result in a boost for First Solar’s systems business in the long term.

Understand how a company’s products impact its stock price on Trefis.

Notes:
  1. U.S. to Expedite Seven Renewable-Renewable Energy Plants, Bloomberg [] []