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First Solar vs. Emeren: Who Shines Brighter in the Solar Surge?
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Key Takeaways
{\"0\":\"First Solar and Emeren are expanding solar projects, but differ in strategies, scale and financial strength.\",\"1\":\"First Solar holds $18.5B in contracts and targets 25 GW capacity by 2026, boosting revenue prospects.\",\"2\":\"Emeren has 295 MW operating, 6,510 MW in development and 4,709 MW storage pipeline driving growth.\"}
As global investments in renewable energy accelerate, solar power continues to be one of the fastest-growing sources of electricity. This trend is fueling opportunities for major solar companies like First Solar (FSLR - Free Report) and Emeren Group (SOL - Free Report) . Both companies are actively engaged in designing and deploying commercial solar projects for utilities. While they share this common ground, their strategies and market strengths differ, offering distinct opportunities for investors.
First Solar, headquartered in Arizona, is recognized for its advanced thin-film photovoltaic solar modules, with manufacturing facilities in the United States, India, Malaysia, and Vietnam. Emeren, headquartered in Connecticut, primarily operates as a global solar project developer, with a growing presence in Europe, North America and Asia.
With demand for solar projects expanding worldwide, investors interested in this industry might find it difficult as to which one among FSLR and SOL offers a better constituent in one’s watchlist. To get that answer, let’s explore how FSLR and SOL compare.
Financial Stability & Future Growth Drivers: FSLR vs SOL
At the end of June 30, 2025, First Solar’s cash and cash equivalents were $1.15 billion. Its long-term debt as of the same date totaled $0.33 billion and the current debt level was $0.25 billion. So, we may safely conclude that First Solar boasts a strong solvency position. This financial strength should support the company’s capital spending plans of $1.0-$1.5 billion, aimed at building new plants, expanding current facilities and upgrading equipment. With such investments, First Solar is well-positioned to achieve its annual manufacturing capacity target of more than 25 GW by the end of 2026.
As of June 30, 2025, SOL’s cash and cash equivalents were $48 million. Its long-term debt as of the same date totaled $55 million and the current debt level was $3 million. This indicates that the company holds a strong liquidity position, which should support its ability to fund its ongoing project pipeline and pursue selective growth opportunities, in the near term.
Looking ahead, the solar industry is poised for continued expansion, driven by falling technology costs and rising awareness of clean energy benefits. With its strong growth potential and alignment with global sustainability goals, the sector remains an appealing area for investment and development. These industry tailwinds are expected to support the prospects of both FSLR and SOL.
First Solar’s total installed nameplate production capacity across all its facilities was approximately 21 gigawatts (GW) as of June 30, 2025. As of June 30, 2025, FSLR entered into contracts with customers for the future sale of 61.9 GW of solar modules for an aggregate transaction price of $18.5 billion, which it expects to recognize as revenues through 2030. This reflects the company’s revenue growth prospects in coming years.
As of June 30, 2025, Emeren owned 295 megawatts (MW) of operating solar photovoltaic projects. In addition, the company held a robust solar development pipeline of 6,510 MW, with 4,279 MW in the early stage and 2,231 MW in the advanced stage. Such a strong development strategy should support continued project monetization, thereby strengthening its revenue base. As of the same date, Emeren’s total energy storage pipeline reached 4,709 MW, highlighting its growing focus on the battery storage segment, which is expected to further enhance its growth potential in the coming years.
Risks of Investing in FSLR and SOL
Both First Solar and Emeren face headwinds from evolving U.S. trade policies and global market dynamics. In April 2025, the U.S. imposed a 10% reciprocal tariff on imports from countries such as Vietnam, India and Malaysia, raising the risk of higher input costs. These measures could push up project and manufacturing costs for both companies, while China’s rapid capacity expansion creates oversupply concerns that may pressure global solar pricing. The One Big Beautiful Bill Act, enacted in July 2025, also scaled back clean energy tax credits and introduced new compliance requirements, which could slow customer demand and affect long-term project economics.
First Solar additionally faces company-specific risks. It is addressing technical issues with certain Series 7 modules manufactured in 2023 and 2024, which may lead to early power loss in the field. The company expects losses from this issue to range between $56 million and $100 million, creating near-term pressure on operating results.
For Emeren, risks include its dependence on a highly concentrated global supply chain, with a significant portion of its component sourcing tied to China. This raises the possibility of project delays if trade tensions escalate between America and China.
How Does the Zacks Consensus Estimate Compare for FSLR & SOL?
The Zacks Consensus Estimate for FSLR’s 2025 earnings implies growth of 26.2%, while that for sales reflects improvement of 27.6%. The consensus estimate for 2026 earnings also reflects an improvement. The stock’s 2025 and 2026 bottom-line estimates have also improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SOL’s 2025 earnings implies a year-over-year improvement, while the same for its 2026 earnings indicates a decline. The stock’s near-term bottom-line estimates have remained the same over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: FSLR vs. SOL
FSLR (up 44.6%) has outperformed SOL (up 0.5%) over the past three months, and it has done the same in the past year as well. While FSLR’s shares have lost 12.7%, SOL plunged 15.6%.
Image Source: Zacks Investment Research
SOL’s Valuation More Attractive Than FSLR
FSLR trades at a forward 12-month Price/Sales (P/S F12M) multiple of 3.77X compared with SOL’s 0.88X, making the latter relatively more attractive from a valuation perspective.
Image Source: Zacks Investment Research
Long-Term Debt to Capital Ratio: FSLR vs. SOL
FSLR’s Long-Term Debt to Capital ratio of 3.70 and SOL’s ratio of 14.56 suggest the latter’s heavier reliance on debt compared with FSLR.
Conclusion
Both First Solar and Emeren are key players in the expanding solar sector with strong project pipelines and growth strategies.
First Solar stands out with long-term contracts, capacity expansion and a solid balance sheet, offering stability for investors seeking steady returns. While risks like module issues and trade tariffs exist, its scale and financial strength support its growth outlook.
Emeren is gaining traction with its growing solar and storage pipelines and focus on monetizing projects, though its smaller scale and reliance on global supply chains add risk.
Ultimately, First Solar may appeal more to investors seeking stability and long-term value, supported by its rising earnings estimates, strong stock performance and lower leverage, making it the stronger solar player for now.
Image: Bigstock
First Solar vs. Emeren: Who Shines Brighter in the Solar Surge?
Key Takeaways
As global investments in renewable energy accelerate, solar power continues to be one of the fastest-growing sources of electricity. This trend is fueling opportunities for major solar companies like First Solar (FSLR - Free Report) and Emeren Group (SOL - Free Report) . Both companies are actively engaged in designing and deploying commercial solar projects for utilities. While they share this common ground, their strategies and market strengths differ, offering distinct opportunities for investors.
First Solar, headquartered in Arizona, is recognized for its advanced thin-film photovoltaic solar modules, with manufacturing facilities in the United States, India, Malaysia, and Vietnam. Emeren, headquartered in Connecticut, primarily operates as a global solar project developer, with a growing presence in Europe, North America and Asia.
With demand for solar projects expanding worldwide, investors interested in this industry might find it difficult as to which one among FSLR and SOL offers a better constituent in one’s watchlist. To get that answer, let’s explore how FSLR and SOL compare.
Financial Stability & Future Growth Drivers: FSLR vs SOL
At the end of June 30, 2025, First Solar’s cash and cash equivalents were $1.15 billion. Its long-term debt as of the same date totaled $0.33 billion and the current debt level was $0.25 billion. So, we may safely conclude that First Solar boasts a strong solvency position. This financial strength should support the company’s capital spending plans of $1.0-$1.5 billion, aimed at building new plants, expanding current facilities and upgrading equipment. With such investments, First Solar is well-positioned to achieve its annual manufacturing capacity target of more than 25 GW by the end of 2026.
As of June 30, 2025, SOL’s cash and cash equivalents were $48 million. Its long-term debt as of the same date totaled $55 million and the current debt level was $3 million. This indicates that the company holds a strong liquidity position, which should support its ability to fund its ongoing project pipeline and pursue selective growth opportunities, in the near term.
Looking ahead, the solar industry is poised for continued expansion, driven by falling technology costs and rising awareness of clean energy benefits. With its strong growth potential and alignment with global sustainability goals, the sector remains an appealing area for investment and development. These industry tailwinds are expected to support the prospects of both FSLR and SOL.
First Solar’s total installed nameplate production capacity across all its facilities was approximately 21 gigawatts (GW) as of June 30, 2025. As of June 30, 2025, FSLR entered into contracts with customers for the future sale of 61.9 GW of solar modules for an aggregate transaction price of $18.5 billion, which it expects to recognize as revenues through 2030. This reflects the company’s revenue growth prospects in coming years.
As of June 30, 2025, Emeren owned 295 megawatts (MW) of operating solar photovoltaic projects. In addition, the company held a robust solar development pipeline of 6,510 MW, with 4,279 MW in the early stage and 2,231 MW in the advanced stage. Such a strong development strategy should support continued project monetization, thereby strengthening its revenue base. As of the same date, Emeren’s total energy storage pipeline reached 4,709 MW, highlighting its growing focus on the battery storage segment, which is expected to further enhance its growth potential in the coming years.
Risks of Investing in FSLR and SOL
Both First Solar and Emeren face headwinds from evolving U.S. trade policies and global market dynamics. In April 2025, the U.S. imposed a 10% reciprocal tariff on imports from countries such as Vietnam, India and Malaysia, raising the risk of higher input costs. These measures could push up project and manufacturing costs for both companies, while China’s rapid capacity expansion creates oversupply concerns that may pressure global solar pricing. The One Big Beautiful Bill Act, enacted in July 2025, also scaled back clean energy tax credits and introduced new compliance requirements, which could slow customer demand and affect long-term project economics.
First Solar additionally faces company-specific risks. It is addressing technical issues with certain Series 7 modules manufactured in 2023 and 2024, which may lead to early power loss in the field. The company expects losses from this issue to range between $56 million and $100 million, creating near-term pressure on operating results.
For Emeren, risks include its dependence on a highly concentrated global supply chain, with a significant portion of its component sourcing tied to China. This raises the possibility of project delays if trade tensions escalate between America and China.
How Does the Zacks Consensus Estimate Compare for FSLR & SOL?
The Zacks Consensus Estimate for FSLR’s 2025 earnings implies growth of 26.2%, while that for sales reflects improvement of 27.6%. The consensus estimate for 2026 earnings also reflects an improvement. The stock’s 2025 and 2026 bottom-line estimates have also improved over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SOL’s 2025 earnings implies a year-over-year improvement, while the same for its 2026 earnings indicates a decline. The stock’s near-term bottom-line estimates have remained the same over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: FSLR vs. SOL
FSLR (up 44.6%) has outperformed SOL (up 0.5%) over the past three months, and it has done the same in the past year as well. While FSLR’s shares have lost 12.7%, SOL plunged 15.6%.
Image Source: Zacks Investment Research
SOL’s Valuation More Attractive Than FSLR
FSLR trades at a forward 12-month Price/Sales (P/S F12M) multiple of 3.77X compared with SOL’s 0.88X, making the latter relatively more attractive from a valuation perspective.
Image Source: Zacks Investment Research
Long-Term Debt to Capital Ratio: FSLR vs. SOL
FSLR’s Long-Term Debt to Capital ratio of 3.70 and SOL’s ratio of 14.56 suggest the latter’s heavier reliance on debt compared with FSLR.
Conclusion
Both First Solar and Emeren are key players in the expanding solar sector with strong project pipelines and growth strategies.
First Solar stands out with long-term contracts, capacity expansion and a solid balance sheet, offering stability for investors seeking steady returns. While risks like module issues and trade tariffs exist, its scale and financial strength support its growth outlook.
Emeren is gaining traction with its growing solar and storage pipelines and focus on monetizing projects, though its smaller scale and reliance on global supply chains add risk.
Ultimately, First Solar may appeal more to investors seeking stability and long-term value, supported by its rising earnings estimates, strong stock performance and lower leverage, making it the stronger solar player for now.
Both FSLR and SOL currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.