First Solar - Market History

Market History

Historically, First Solar has sold its products to solar project developers, system integrators, and independent power producers. Early sales were primarily in Germany because of strong incentives for solar enacted in the German Renewable Energy Sources Act (EEG) of 2000 (cp. Solar power in Germany). Declines and uncertainty in feed-in-tariff subsidies for solar power in European markets, including Germany, France, Italy and Spain, prompted major PV manufacturers, such as First Solar, to accelerate their expansion into other markets, including the U.S., India and China.

In December 2011, First Solar announced a change to its existing business strategy, stating it would shift away from existing markets that are heavily dependent on government subsidies and toward providing utility-scale PV systems in sustainable markets with immediate need. In making this strategic shift, First Solar will aim to compete against conventional power generators. This shift in the company's strategy also means it will reduce its focus on the rooftop and off-grid market and focus primarily on serving the utility market instead.

First Solar’s manufacturing cost per watt reached $1.23 in 2007 and $1.08 in 2008.On February 24, 2009, cost per watt broke the $1 barrier, reaching $0.98. By November 2012, its production cost had fallen to $0.67 per watt.