What's Happening?
First Solar, Inc., a leading American solar technology and manufacturing company, has announced plans to establish a new production facility in Gaffney, South Carolina. The facility, which will require an investment of approximately $330 million, is expected
to commence operations in the second half of 2026. This new plant will create over 600 jobs, offering an average manufacturing salary of $74,000 per year, significantly higher than the local per capita income. The facility will enhance First Solar's capacity to produce American-made solar technology, compliant with anticipated Foreign Entities of Concern guidance, by 3.7 gigawatts. This expansion is part of First Solar's broader strategy to increase its domestic production capacity to nearly 18 gigawatts by 2027, supported by the One Big Beautiful Bill Act signed by President Trump in July 2025.
Why It's Important?
The establishment of the new facility in South Carolina is a significant step towards bolstering U.S. energy independence and supporting domestic manufacturing. By increasing its production capacity, First Solar is responding to heightened demand for American-made energy technology, driven by recent legislative and trade policies. This move not only strengthens the local economy by creating high-paying jobs but also positions the U.S. as a leader in solar technology manufacturing. The investment aligns with national goals of energy dominance and affordability, potentially reducing reliance on foreign energy sources and enhancing the country's competitive edge in the global solar market.
What's Next?
As First Solar prepares to launch its new facility, the company will focus on completing the construction and beginning operations by late 2026. The expansion is expected to support over 30,000 direct, indirect, and induced jobs across the U.S., contributing more than $3 billion in labor income. Stakeholders, including local government officials and industry leaders, will likely monitor the project's progress and its impact on the regional economy. Additionally, First Solar's compliance with the Foreign Entities of Concern guidance will be crucial in maintaining its market position and meeting customer objectives.
Beyond the Headlines
The development of the South Carolina facility highlights broader trends in the renewable energy sector, including the shift towards onshoring production processes to mitigate geopolitical risks and ensure compliance with domestic regulations. This strategic move by First Solar may influence other companies in the industry to consider similar investments, fostering innovation and growth within the U.S. solar manufacturing landscape. Furthermore, the initiative underscores the importance of legislative support in driving industry advancements and achieving national energy goals.
