KEY POINTS
- First Solar shares fell 16.7% after annual sales forecast missed Wall Street estimates
- Policy uncertainty and permitting delays in the U.S. affecting utility-scale solar projects
- Tariff impacts of $125–135 million expected for 2026
- Pakistan’s solar sector could learn from policy-related volatility affecting investment and growth
ISLAMABAD: Shares of U.S.-based First Solar fell sharply on Wednesday after the company forecast 2026 net sales below Wall Street expectations, highlighting the impact of policy uncertainty and permitting delays on the solar industry.
First Solar projected annual sales between $4.9 billion and $5.2 billion, compared with analysts’ average estimate of $6 billion.
The company attributed the shortfall to delays in project approvals and tariff pressures amid a policy focus on oil, gas, coal, and nuclear energy, contrasting with previous green energy incentives.
Executives said total tariff impacts for the year would range from $125 million to $135 million, while demand for its Series 6 solar modules for utility-scale plants remained constrained.
To address supply and optimise domestic sales, First Solar plans to open a new finishing line in South Carolina later this year, utilising front-end production from Southeast Asia.
Analysts noted that these setbacks are temporary and that the company’s prospects for 2027 remain strong, contingent on stable policy and the absence of additional tariffs.
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The situation serves as a lesson for policymakers and regulators in Pakistan, where the nascent solar sector has faced regulatory and policy uncertainties that can affect investor confidence, growth, and eventual public listing of solar companies.
Ensuring clear guidelines, stable incentives, and streamlined permitting could help Pakistan’s solar industry attract long-term investment and scale effectively.
