First Solar, Inc. (NASDAQ:FSLR) is on the verge of benefiting from the Solar overhaul expected from the Indian government. The company has been exploring business opportunities outside the United States in regions such as Asia, Latin America and Middle East. Given, the nascent stage of the Indian solar industry, the company stands a solid chance to earn revenue in the country, says a report from Seeking Alpha by FNF Solutions.
First Solar enjoys a competitive edge
As a vertically integrated solar company, First solar has achieved significant results for itself in the Indian market. Also, the solar panels made and the technology adopted by the company goes in line with the conditions of the country.
Silicon-based solar panels produce lower electricity due to high levels of humidity and high level of solar irradiance, which is received in a good amount in India. First Solar manufactures panel using Cadmium telluride thin film technology, which does not go same level of degradation in performance in hot and humid climates. This makes First Solar a strong contender in the Indian markets.
Also, the company has a good reputation and business record in India along with a deep hold in the market. Over the past years, the company has managed to win many solar panel contracts. Additionally, Indian government’s policy of giving more advantages to the thin film producers benefited the company.
Big opportunity for First Solar
First Solar is not new to India as in the past also, the company has supplied solar panels in the country. However, this time the company is prepping to roll over its first independent project with a 45 megawatt capacity. Also, the company has entered into a power purchase agreement with a local utility company. For the current quarter the solar panel manufacturer missed on the earnings and revenue, but pulled out an impressive performance. Investors did not react much on the earnings miss, reflecting their confidence in the company.
India represents an interesting market for the company because the domestic Solar Panel manufacturers do not offer quality panels. Thus, consumers depend largely on the imported panels or imported cells for their solar farms. As the imported panels are more efficient, the companies using them will yield higher energy, which in turn would help them to get guaranteed financing from the banks.
Previously, the Indian government had plans to install about 3.6 GW of solar power by 2017, but now it has been revised to 15 GW by 2019. “This movement will indeed prove beneficial for First Solar in the coming years and lead to business growth in the Asian region,” says the author.