First Solar shines, trading at a discount to solar power peers (Part 6 of 18)
(Continued from Part 5)
North America
The United States has traditionally been the biggest market for First Solar (FSLR), with around 90% of its revenue—$3 billion in fiscal 2014—coming from the country. As we saw in the previous part of this series, most of the company’s major projects are located in the US. The majority of First Solar’s key customers, which we’ll talk about in the next part, are located in the US.
Canada accounted for over 10% of First Solar’s total revenues in fiscal 2012. However, Canada’s share has dwindled to almost negligible in fiscal 2014.
Australia
Australia emerged as the second-biggest market in fiscal 2014, with revenue of $157 million, 5% of net sales. Australia receives among the most sunlight every year. However, Australia lags in total solar installations, with cumulative installations of just 3 gigawatts at the end of 2013. Part of the reason for this lag is the abundance of coal and other energy commodities in Australia.
However, things are changing, with the government setting up a target of 20% generation though renewable energy by 2020. First Solar is currently executing two projects expected to complete this year. The company will also look after operations and maintenance of these plants for the next 15 years.
Germany and the rest of Europe
Germany so far has remained the darling of the solar power industry, with over a 25% share in cumulative installations by the end of 2013. However, its share of First Solar’s total revenue remains small, at less than 5%—$122 million in fiscal 2014. The company has a negligible presence in the rest of Europe.
Geographical presence differentiates First Solar (FSLR) from its solar power industry peers (TAN) like Yingli Green Energy (YGE), Trina Solar (TSL), and JA Solar (JASO), whose revenues mostly come from Europe and China.
First Solar underscored India’s importance repeatedly in its fiscal 2014 call and annual report. Let’s move to the next part of our series to learn why.
Continue to Part 7
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