Can First Solar’s South Carolina plant boost American solar dominance?

First Solar, Inc. (NASDAQ: FSLR) has selected South Carolina as the site for its latest solar panel manufacturing facility, marking a $330 million investment aimed at reshoring critical parts of the U.S. solar supply chain. The plant, located in Gaffney, Cherokee County, will focus on the final assembly of the company’s thin-film photovoltaic modules and is expected to begin commercial operations in the second half of 2026.

The site will add 3.7 gigawatts of annual nameplate capacity to First Solar’s operations and create over 600 full-time jobs with average salaries of approximately $74,000. With this expansion, the company’s domestic capacity is projected to reach 17.7 gigawatts by 2027.

Why is First Solar betting on final-stage manufacturing in South Carolina?

The Gaffney plant is designed to handle the final processing of First Solar’s Series 6 Plus thin-film modules, which are initially produced at its international factories. By performing finishing work domestically, the company can ensure that these modules qualify under emerging “foreign entity of concern” compliance rules tied to federal funding and procurement standards.

This production strategy supports First Solar’s broader effort to fortify U.S.-based clean energy manufacturing. The company already operates vertically integrated plants in Ohio, Alabama, and Louisiana and runs R&D hubs in Ohio and California. The South Carolina facility allows the company to plug a critical value-chain gap by localizing a major portion of its assembly line without duplicating upstream capital expenditure.

How does this project align with U.S. clean energy and manufacturing policy?

Analysts tracking the solar sector see First Solar’s move as a direct response to federal policy shifts. The Inflation Reduction Act, import tariffs, and domestic content incentives have created fertile ground for reshoring initiatives across clean energy verticals. Final-stage manufacturing—particularly panel assembly and lamination—is becoming a strategic sweet spot for companies seeking to strike a balance between global production efficiency and U.S. compliance.

South Carolina Governor Henry McMaster welcomed the announcement and positioned the project as a cornerstone of the state’s clean energy ambitions. The $330 million investment not only adds high-wage jobs to the region, but also places Cherokee County on the clean-tech manufacturing map, attracting supply chain partners and related infrastructure development.

What makes First Solar’s thin-film strategy different from other U.S. solar firms?

While the global solar market remains dominated by crystalline silicon modules, First Solar has carved out a differentiated niche with cadmium telluride (CdTe) thin-film technology. These panels are known for their high energy yield in hot and humid environments, faster energy payback times, and lower carbon footprint compared to traditional silicon-based products.

By focusing on thin-film, First Solar avoids direct cost competition with low-priced imports from Asia and instead leans into performance-driven projects, particularly large-scale utility deployments. The South Carolina facility adds another layer of competitiveness by enabling the company to offer U.S.-made modules with complete traceability, a growing requirement for developers navigating federal and state incentive programs.

How are financial markets and investors reacting to this expansion?

Following the announcement, shares of First Solar fell approximately 4.6 percent, with the stock trading around $244.72. The reaction reflects short-term concerns about capital expenditures and the timeline for return on investment. Analysts expect execution risk to remain a key investor focus, especially as the company works to meet its H2 2026 operational target.

While institutional sentiment has been broadly positive around First Solar’s long-term reshoring strategy, margin compression and CapEx overhangs could weigh on near-term performance. Investors will likely watch closely for any updates in upcoming earnings calls regarding hiring progress, automation investments, cost-per-watt improvements, and the plant’s role in supporting new contract wins.

What is the broader economic and regional impact of the Gaffney facility?

The Cherokee County facility is expected to bring more than 600 high-paying jobs to the region, with average salaries nearly double the local per capita income. Economic development officials in South Carolina view this as a catalytic investment that will attract suppliers, service providers, and ancillary clean-tech businesses.

First Solar’s workforce development plans will likely include partnerships with regional technical colleges and job training programs focused on advanced manufacturing. Over time, the Gaffney facility could serve as a template for clean energy cluster formation in Southeastern U.S. states that combine pro-business incentives with logistics and infrastructure advantages.

What are the risks and expectations around project execution and scalability?

With commercial operations targeted for the second half of 2026, First Solar faces a tight runway to achieve permitting, construction, hiring, and equipment commissioning. Supply chain bottlenecks, inflationary construction costs, and labor market constraints could all pose risks to the timeline.

That said, the company’s track record of bringing large-scale plants online—including recent expansions in Alabama and Louisiana—gives it a degree of execution credibility. Analysts expect the Gaffney facility to contribute meaningfully to First Solar’s long-term cost structure and capacity optimization strategy, provided it hits its operational targets on time and within budget.

How does this fit into the competitive landscape for U.S. solar manufacturers?

As one of the few large-scale U.S.-headquartered solar manufacturers, First Solar continues to set the pace for clean-tech industrialization in North America. Its decision to invest in a specialized final-assembly facility is seen as a smart tactical move, allowing the company to remain agile and capital efficient while achieving policy compliance and customer demand localization.

This model may influence other solar firms exploring reshoring options. Instead of full-scale vertical integration, more companies may opt for U.S.-based finishing plants that create jobs, align with domestic procurement rules, and strengthen project-level value propositions for government-backed solar installations.

Key takeaways: What the Gaffney solar facility means for First Solar and the U.S. market

• First Solar, Inc. will invest approximately $330 million to build a new solar panel assembly plant in Gaffney, South Carolina, with operations starting in H2 2026.

• The facility will add 3.7 gigawatts of nameplate capacity and push the company’s U.S. total to 17.7 gigawatts by 2027.

• Over 600 new high-paying jobs will be created, with average salaries around $74,000 per year.

• The plant will perform final-stage assembly of the Series 6 Plus thin-film modules, helping First Solar meet U.S. content and compliance rules.

• This investment reflects broader trends in clean energy reshoring and aligns with federal policy under the Inflation Reduction Act.

• Investor sentiment was cautiously optimistic, with short-term CapEx concerns impacting the stock’s performance after the announcement.

• The Gaffney site may serve as a model for localized clean-tech finishing hubs across the United States.

• Execution and timeline will be key factors to monitor in 2026, especially around labor availability, automation readiness, and cost controls.

• The project strengthens South Carolina’s clean energy manufacturing position and may attract broader supply chain investment in the region.

• First Solar’s differentiated thin-film technology remains a cornerstone of its competitive moat in a largely silicon-dominated solar sector.