US-based solar technology company First Solar on Thursday unveiled its new $700 million facility in Tamil Nadu, touted to be the country’s first fully vertically integrated solar manufacturing plant.
The facility, which has an annual nameplate capacity of 3.3 gigawatts (GW) and directly employs around 1,000 people, produces First Solar’s Series 7 photovoltaic (PV) solar modules, which were developed at the company’s research and development centres in the US and optimised for the Indian market.
The company’s tellurium-based semiconductor, which allows it to avoid dependence on Chinese crystalline silicon supply chains, is the second most common photovoltaic technology available today.
Representing an investment of close to $700 million, which includes $500 million in previously announced DFC financing, the facility is First Solar’s sixth operational factory and expands the company’s global manufacturing footprint to four countries, including the US, Malaysia, and Vietnam. First Solar has recently signed an MoU with Tamil Nadu government for Rs 2,500 crore investment in the state.
Mark Widmar, CEO, First Solar, said: “The inauguration of this landmark manufacturing facility and the launch of commercial shipments to customers in India is a crucial milestone in our journey to long-term and sustainable growth.”
The factory, which is located in an area of high baseline water stress, is believed to be the world’s first net-zero water withdrawal solar manufacturing facility.
Designed to minimise its impact on local water resources, the facility will rely entirely on tertiary treated reverse osmosis water from the city’s sewage treatment plant and have zero wastewater discharge. Additionally, the factory is home to India’s first solar PV recycling plant.
The Series 7 module produced by the new facility is the industry’s most eco-efficient with a carbon and water footprint that is approximately four times lower than crystalline silicon solar panels produced in China. The company’s sustainable manufacturing approach uses 50% less energy and only a third of the water than an equivalent polysilicon module production facility would require.
Since the start of this decade, First Solar has embarked on a $4.1 billion manufacturing expansion strategy that has seen it grow from approximately 6 GW operational in 2020 to over 16 GW global nameplate capacity at the end of 2023.
In addition to its India facility, the company also commissioned its third US factory, located in Ohio, in 2023. The company is further growing its footprint in the US with a 0.9 GW expansion of its Ohio manufacturing complex and new factories in the states of Alabama and Louisiana, which are each expected to add 3.5 GW of annual nameplate capacity, once commissioned and ramped. The company expects to have 25 GW of global annual nameplate capacity by 2026.