First Solar goes for reduction in manufacturing cost

First Solar has indicated that its manufacturing cost has now fallen to 93 cents per watt, down 5% in three months and down 28% in a year.

By 2014, it expects to drive down cost per watt to make solar modules to fall to between 52 and 63 cents by 2014. The biggest driver of the lower costs is better efficiency, it said. Production per fabrication line is expected to nearly double over the next five years.

The company believes its ongoing focus on cost reduction enables continued growth even as subsidies decline.

Earlier this year, when the company had reduced its manufacturing cost for solar modules to 98 cents per watt, it had mentioned that its ongoing improvement plans are to continue to drive the efficiency that helps drive costs down, drive the run rates of the factories, and then of course continuing to focus on the raw material costs as it purchases them. Its manufacturing costs have declined two-thirds from over $3 per watt to less than $1 per watt since First Solar began full commercial operation of its initial manufacturing line in late 2004.

In terms of performance this year, First Solar’s first-quarter profits more than tripled as the company inked numerous new power projects and cut its production costs. The company earned $164.6 million in the first quarter, compared with $46.6 million for the same period last year. Quarterly sales were $418.2 million for the three months that ended March 28, up from $196.9 million during the same period last year.

Source: Thin Film Today