First Solar to invest up to $1.2 billion in US panel manufacturing, including new factory

First Solar on Tuesday announced plans to invest up to $1.2 billion to increase production of solar panels in the United States.

Up to $1 billion will go toward building a new solar panel factory somewhere in the Southeast, the largest U.S. solar panel maker said in a news release.

The new fully integrated factory, which will be First Solar’s fourth in the Americas, is expected to begin operations in 2025, subject to pending government permitting and approval.

First Solar will invest $185 million to expand its three Ohio manufacturing facilities. The company said its third factory in the state is expected to become operational in the first six months of 2023.

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“By passing the Inflation Reduction Act of 2022, Congress and the BidenHarris administration have entrusted our industry with the responsibility of enabling America’s clean energy future, and we must rise to the occasion of ‘a timely and sustainable way,’ said First Solar. CEO Mark Widmar said in a statement.

He called the investment an “important step toward achieving selfsufficiency in solar technology, which in turn supports America’s energy security ambitions, its deployment of solar at scale, and its ability to lead with innovation”.

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President Biden signed the Inflation Reduction Act into law earlier this month. The law allocates $369 billion to climate and energy policies and includes a tax credit related to the production of solar cells in the United States.

First Solar’s announced investment will add at least 850 new manufacturing jobs, bringing its total number of U.S. employees to more than 3,000 by 2025, the company estimated in the statement.