First Solar signs deal for sale of up to $700M in 2023 IRA tax credits (NASDAQ:FSLR) - Seeking Alpha
First Solar signs deal for sale of up to $700M in 2023 IRA tax credits (NASDAQ:FSLR) | Seeking Alpha
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- First Solar (NASDAQ: FSLR) Wednesday said it signed two separate tax credit transfer agreements to sell $500M and up to $200M, respectively, of 2023 Inflation Reduction Act Advanced Manufacturing Production tax credits to Fiserv.
- Under agreement terms, Fiserv would pay a price of $0.96 per $1 of tax credits to First Solar during the first half of 2024.
- The tax credits result from the sale of photovoltaic (PV) solar modules produced in 2023 by First Solar’s operational manufacturing footprint in the United States.
- For FY23, the company expected that "Two transactions for $500M and up to $200M will reduce our full-year 2023 pre- and post-tax earnings by up to $28M, resulting in a reduction of 2023 diluted earnings by up to $0.26 per share."
- The company further expects to have 14 gigawatts of fully vertically integrated US solar manufacturing capacity by 2026.
- Additionally, First Solar is investing up to $370M in a dedicated R&D innovation center in Perrysburg, Ohio, expected to be completed in 2024.
- Source: Press Release
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Declining costs and government encouragement have resulted in a rapid increase in solar energy production in the United States over the past 10 years, although solar’s share remains small: 1.6 percent of all electricity generation in 2018. That rapid growth is projected to continue.