Sales from First Solar's Two divisions (1) Photovoltaic Systems, and (2) Photovoltaic Modules, are expected to contribute roughly $2.4 billion (73%) and $0.9 billion (27%) to its Total Revenue estimate of $3.3 billion for full-year 2019
2019E Revenue Breakdown:
Photovoltaic Systems = 73%Photovoltaic Modules = 27%
First Solar's Business Model
What Need Does It Serve?
Providing a cleaner, cheaper source of energy: First Solar manufactures and sells solar modules and photovoltaic (PV) solar systems. The need to shift toward cleaner, renewable sources of energy has never been more urgent, and First Solar provides a vast array of solar power solutions for commercial and residential purposes.
... while maintaining high conversion efficiency: First Solar's Cadmium-telluride (Cd-Te) thin-film semiconductor technology has been outpacing the solar industry when it comes to panel efficiency gains. The Cd-Te technology has a higher theoretical upper limit for efficiency compared to silicon-based panels, and also helps cut manufacturing costs.
Has Two Operating Segments-
1) Photovoltaic Solar systems: The systems business is responsible for providing complete PV solar power systems which includes project development, EPC (Engineering, Procurement and Construction) services, O&M (Operation and Maintenance) services, and project finance. These are sold directly to investor owned utilities, independent power developers and producers, industrial companies, and other system owners.
2) Photovoltaic Solar Modules: The components segment involves the design, manufacture, and sale of solar modules which convert sunlight into electricity. Customers include project developers, system integrators, and operators of renewable energy projects.
What are the alternatives?
Photovoltaics and Solar Industry: The company faces intense competition from the likes of SunPower, Canadian Solar, Trina Solar, and Suntech Power in the solar energy segment.
What is the basis of competition?
Competition is based on Price per Watt of the installed systems, the conversion efficiency, reliability, production capacity, and the Average Sales Price of the modules.
First Solar's Total Revenue dropped 22.7% from $2.9 billion in 2016 to around $2.2 billion in 2018, but we expect it to grow to almost $3.7 billion by 2020, on the back of significantly stronger shipment numbers
% Change in Total Revenue
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Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
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