US Solar Manufacturer Reports Strong Financials For 2023

Increased Module Sales Improve First Solar’s Revenues In Q4/2023; Forecasts Higher Sales For 2024

US Solar Manufacturer Reports Strong Financials For 2023

First Solar had a successful run in 2023, and expects to sustain the growth momentum in 2024 as well. (Photo Credit: First Solar, Inc.)

  • First Solar improved its annual net sales in 2023 by $699 million to over $3.3 billion 
  • It attributes the increase to higher ASPs and improved solar module sales as it sold 11.4 GW 
  • The management has provided an upbeat guidance of up to $4.6 billion in net sales during 2024 with as much as 16.3 GW of sales 

Higher ASPs and improved solar module sales helped First Solar report a 27% annual increase in 2023 net sales, as the company expects to further improve with 33% to 39% annual increase in 2024. 

In terms of volumes, the US solar module manufacturer sold 11.4 GW in 2023, while it forecasts sales of between 15.6 GW and 16.3 GW for 2024. 

Its confidence stems from a contracted backlog of 80.1 GW as of February 27, 2024. Potential booking opportunities increased by around 600 MW since the previous quarter to 66.5 GW in Q4/2023. Mid-to-late stage opportunities stand at 32 GW, comprising 23.2 GW in North America, 8.5 GW in India and 300 MW in the European Union (EU). 

First Solar says it added 2.3 GW in net bookings since the last earnings call. At the end of 2023, its net bookings totaled 28.3 GW. 

The management expects to exit 2024 with over 21 GW in global nameplate production capacity, including over 10 GW in the US. (Photo Credit: First Solar, Inc.)

Production capacity 

Manufacturing expansion is on track, according to the management that expects to exit 2024 with over 21 GW of global nameplate capacity. With the commissioning of the Louisiana fab in late-2025, the nameplate capacity will further exceed 25 GW by 2026-end, including 14 GW in the US. 


During Q4/2023, First Solar earned $1.2 billion in net sales that increased by $400 million from the previous quarter. The increase was driven by higher volumes sold, including higher net sales of Series 7 modules. 

Gross margin was 43%, down from 47% in Q3/2023. Philip Shen of ROTH MKM says the management attributed this largely to continued module cost reduction and a decrease in freight demurrage and detention charges. It was partially offset by a $28 million adjustment associated with 45X tax credit transfer sales and underutilization charges associated with ramping new manufacturing. 

For full year 2023, First Solar’s $3.3 billion net sales increased by $699 million annually. Annual operating income went up to $857 million, while net income increased to $831 million by $885 million and $875 million in the previous year, respectively. 


In 2024, the management expects to score between $4.4 billion and $4.6 billion in net sales. Out of the projected volume sales in 2024, First Solar expects to sell 5.8 GW to 6.1 GW modules produced in the US, along with 2 GW to 2.2 GW of modules produced and sold in India. 

Operating income is guided in the $1.5 billion to $1.6 billion range. Gross margin guidance of $2.0 billion to $2.1 billion and operating expenses of $455 million to $485 million include $1 billion to $1.05 billion of Section 45X tax credits. It also expects to incur capital expenditures of $1.7 billion to $1.9 billion during the year. 

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. --Email : [email protected] --

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