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| Table of Contents |
| Intro and Overview |
| Introduction |
| Company Overview |
| Trends and Forces |
| Key Trends and Forces |
| Competition |
Competition
First Solar, although a leader within the thin film PV space, faces stiff competition from traditional silicon PV manufacturers such as SunPower, Suntech and Kyocera just to name a few.
| Retailer | Revenue | Gross Profit | Net Income |
|---|---|---|---|
| First Solar[1] | 1,246 | 678 | 348 |
| Sunpower[2] | 1,435 | 364 | 92 |
| Suntech[3] | 1,923 | 343 | 88 |
| Sharp[4] | 34,177 | 7,676 | 1,019 |
| Kyocera[5] | 12,904 | 1,524 | 1,072 |
| BP[6] | 365,700 | 35,200 | 21,666 |
Market Size
World solar PV installations grew by 110% from 2007 to 5.95 GW in 2008. Production increased by 50% from 2007 to 6.85 GW in 2008, while thin film production reached 0.89 GW, a 123% growth as compared to 2007. In 2008 the PV industry recorded $37.1 billion in global revenues.[7]
In 2007 in the United States shipments of thin film photovoltaic modules were 202,519 peak kilowatts, which comprised 39% of the total shipments of photovoltaic cells and modules.[8]
First Solar currently gets most of its business in Europe; the company is planning on entering the U.S. market with a focus on wooing electric utilities operators who need to incorporate renewable energy sources into their energy portfolios to meet new legislative standards. The company believes its low-cost production will make up for its low efficiency, making it attractive to utilities who want to build large-scale solar installations in regions without year-round sunny weather.
$/Watt
A common metric among solar PV manufacturers $/Watt; the cost of generating 1 Watt of solar energy capacity. Thin-film PV will continue to demonstrate considerable pricing disparity versus traditional silicon PV. Thus, predictions positions First Solar very favorably moving into the future.
In the first quarter of 2008, First Solar produced its cells at an average cost per watt of $1.14 ($0.02 of which were incurred because of stock-based compensation and $0.03 of which were incurred because of dollar-euro exchange rates), and sold them at an average price per watt of $2.45.[9]
As of February of 2009, First Solar lowered its manufacturing costs per Watt to .98 cents, the cheapest in the industry, and much lower than the companies cost per Watt of $3 in 2004.[10]
Future Threats
There are considerable threats moving into the future. Due to the low cost of producing thin film PV modules, some solar companies are now considering moving into this product area that characteristically requires no/less poly-silicon. As a result, market consolidation or JV's within the industry will step up First Solar's competition.
PrimeStar Solar, a private company is using a recent infusion of capital from General Electric to quickly begin production of their own CdTe modules. They do not disclose the timing of production "for competitive reasons," but their hiring and equipment orders speak of an aggressive schedule; production expected to begin this year.
Other Industry Competitors
Other competitors, with 2005 market share[11], include:
- SunPower (SPWR) (insignificant in 2005) - One of the fastest growing solar companies, with one of the most efficient cells around
- Sharp Electronics (24%) - The largest photovoltaic cell manufacturer in the world
- Suntech Power Holdings (4%) - A Chinese photovoltaic cell company that is muscling its way into world solar markets
- JA Solar Holdings, (insignificant in 2005) - A Chinese PV company that only sells monocrystalline solar cells; it lets its customers take care of building the modules and systems.
- Solarfun Power Holdings (insignificant in 2005) - Another Chinese PV company that operates 90% in Europe and makes most of its money by selling modules, rather than individual cells.
- Evergreen Solar (insignificant in 2005) - A solar company that produces string ribbon PV cells and operates at all production levels from silicon wafer to power system.
- Kyocera (8%) - A Japanese electronics company that is also a major manufacturer of solar cells
- Q-Cells (9%) - A privately owned, German solar manufacturer
- BP (5%), Mitsubishi (6%), and Sanyo (7%) - Not primarily photovoltaic cell manufacturers, but heavy market competitors nonetheless.
- EMCORE (insignificant in 2005) - A Concentrated Photovoltaic System manufacturer that uses Gallium arsenide PV cells and got its start in the solar business making power cells for satellites.
- Energy Conversion Devices - This company uses amorphous thin-film silicon in its ultra-thin, albeit low-efficiency solar cells.
References
- ↑ First Solar 10k 2008 Pg. 27
- ↑ SunPower 10k 2008 Pg. 32
- ↑ Suntech 20F Pgs. 64-66
- ↑ Sharp World Investor Relations - Financial Highlights
- ↑ Kyocera 20F 2008 Pg. 6
- ↑ BP 20F 2008
- ↑ World PV Industry Report Summary 2009
- ↑ Solar Photovoltaic Cell/Module Manufacturing Activities 2007
- ↑ First Solar, Inc. Announces 2007 Fourth Quarter and Year-end Financial Results
- ↑ First Solar Passes $1 Per Watt Industry Milestone
- ↑ CIBC Initiating Coverage, SOLF, January 29th, 2007
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