First Solar, Inc. (FSLR) Stock Analysis

First Solar’s principal competitive advantage is its proprietary thin-film cadmium telluride (CdTe) solar module technology, which differentiates it from the dominant crystalline silicon (c-Si) products of Chinese rivals such as LONGi, JinkoSolar, and Trina Solar. CdTe modules use only 2–3% of the semiconductor material required for c-Si modules, resulting in lower material costs and a smaller carbon footprint. First Solar’s Series 7 modules have a carbon and water footprint roughly four times lower than Chinese c-Si modules and achieve an energy payback time five times faster. These modules also perform better in high temperatures and partial shading, and are immune to cell cracking—a common failure in c-Si panels.

Vertical integration is another key strength. First Solar is the only major U.S.-headquartered solar manufacturer with a fully integrated domestic supply chain, reducing exposure to geopolitical risks and tariffs that have disrupted Asian competitors. Its U.S. manufacturing base is supported by a network of domestic suppliers, and the company is on track to exceed 25 GW of global nameplate capacity by 2026.

First Solar’s cost structure is further supported by U.S. policy tailwinds, notably the Section 45X manufacturing tax credit, which provides approximately $0.17 per watt for U.S.-produced modules. This, combined with a strong balance sheet and a $20.5 billion contracted backlog, positions the company to weather industry price volatility and maintain pricing power relative to most peers.