Nevada similarly requires utilities to get 25% of their total power from a renewable source by 2025, with an additional requirement that 5% come from solar starting in 2016. First Solar has helped build three facilities totaling 118 MW operating in southern Nevada, including San Diego-based Sempra U.S. Gas & Power's $141-million, 58-MW Copper Mountain Solar 1, which is located on 450 acres in Boulder City, Nev.
The 3-year-old facility, which uses 775,000 First Solar panels, is undergoing a two-phase 150-MW expansion that will generate enough electricity for 45,000 homes. Copper Mountain Solar 2 had 92 MW come online earlier this year, with another 58 MW to be added by 2015. The project, which includes a substation and a 230-kV, 1.5-mile-long transmission line, will create 628 construction jobs.
Southwest Sizzle
Like its Southwest neighbors, Arizona offers renewable energy incentives, which helped with the development of projects like Agua Caliente. The state has a 10% tax credit for the installation cost of solar arrays in commercial and industrial applications built between Jan. 1, 2006, and Dec. 31, 2018. Similarly, New Mexico offers a 6% tax credit against corporate income and gross receipts for photovoltaic generating facilities installed after July 1, 2009. Any unused credit may be carried forward for up to 10 years, with the total amount being capped at $60 million.
"Large land tracts, abundant year-round sunlight and state incentives have made the Southwest U.S. an ideal location for First Solar's advanced thin film PV technology," says Alan Bernheimer, a company spokesman.
In January, First Solar bought the 50-MW Macho Springs Solar project in Deming, N.M., from Portland, Ore.-based Element Power Solar for an undisclosed amount. Macho Springs will be the state's largest solar power project upon completion in 2014, powering 18,000 homes and displacing 40,000 tons of carbon dioxide per year. The project will give First Solar three facilities totaling 100 MW of installed capacity in New Mexico.
Bright Future
First Solar shows no signs of slowing down, with 2.9 GW of U.S. projects under construction or development in early 2013. The company plans $80 million to $100 million in capital expenditures in 2013, although "a typical commercial solar installation takes 3 to 5 years to finish," says Mark Fillinger, project development director. First Solar, which often sells projects upon completion, anticipates $650 million to $750 million in net sales in 2013, with a 25% to 27% gross margin, including an expanded presence in India, Australia and Africa.
"In order to facilitate our development in new markets, we continue to work with local developers and pursue strategic partnerships," James Hughes, First Solar CEO, told investors on Feb. 26. "[Our] solid foundation [enables us] to weather the current challenges facing the industry as we continue our strategy to develop the long-term growth potential of sustainable markets …[while] increasing our representation on the ground globally."
