First Solar inks up to US$700 million tax credit transfer agreement on Section 45X

January 2, 2024
Facebook
Twitter
LinkedIn
Reddit
Email
The agreement comes only a few days after the US Department of Treasury and IRS released guidance on Section 45X credits. Credit: First Solar

Thin film solar module manufacturer First Solar has entered into two separate tax credit transfer agreements (TCTAs) to sell US$500 million and up to US$200 million of advanced manufacturing production tax credits to finance tech company Fiserv.

Under the terms of the agreements, and subject to satisfaction of certain conditions, Fiserv will pay US$0.96 per US$1 of tax credits to the cadmium telluride (CdTe) module manufacturer during the first half of 2024, including fees and commissions paid by First Solar to the placement agent.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The agreement was signed a few days after the US Department of Treasury and The Internal Revenue Service (IRS) released a proposed guidance for the Section 45X credits on advanced manufacturing production credit. This marks the first significant credit transfer of its kind in the solar manufacturing industry, according to the company.

“The liquidity generated as a result of this transaction is expected to accelerate the timing of enhancing our cash position in the US through the monetisation of the Section 45X credits, further strengthening our balance sheet and allowing us to continue investing in key aspects of growth, such as research and development,” said Alex Bradley, chief financial officer, First Solar.

Mark Widmar, CEO of First Solar, added that this deal is evidence of the Inflation Reduction Act delivering on its intent, which was to incentivise domestic manufacturing while providing manufacturers with liquidity to reinvest in growth and innovation.

“This agreement establishes an important precedent for the solar industry, confirming the marketability and value of Advanced Manufacturing Production tax credits,” said Widmar.

The company expects to invest more than US$2 billion in new manufacturing facilities in the US states of Alabama and Louisiana, while expanding its Ohio footprint and investing up to US$370 million in a research and development facility which is expected to be completed in 2024. First Solar is aiming to expand its annual nameplate production capacity to 14GW of solar modules in the US by 2026.

During the third quarter of 2023, the CdTe module manufacturer reached a production capacity of 3.2GW, increasing by 14% from the previous quarter and raising its volume for the seventh quarter in a row.

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

October 27, 2025
Engie has signed additional PPAs with Meta, expanding their partnership to more than 1.3GW across four solar projects in Texas.
October 27, 2025
Waaree Energies has secured four solar module supply contracts totalling 692MW – three for projects in India and one in the US through its subsidiary.
October 27, 2025
US solar technology company Swift Solar has deployed perovskite solar technology as part of a Department of Defence cyber warfare exercise in the state of Virginia.
October 23, 2025
US solar manufacturer T1 Energy sold approximately 725MW of solar modules in Q3 2025, as it continues to expand US manufacturing capabilities.
October 22, 2025
Recurrent Energy, Ampliform and Dimension Energy have announced new financing rounds this month for US solar projects.
October 22, 2025
Leeward Renewable Energy has started commercial operations at its 177MW Ridgely solar project in the US state of Tennessee.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany