Solar maker First Solar Inc. (NASDAQ: FSLR) will not ship any more modules to the company’s Agua Caliente solar farm project until January 2013. The stoppage is the result of the project being ahead of its construction schedule, which calls for completion at the end of next year.
First Solar diverted module shipments from its manufacturing facilities to Agua Caliente in an effort to soak up an inventory glut. Now the company will try to divert modules to other projects as it tries to keep up with production.
Bloomberg reports that the plant’s construction manager said:
We installed the last module for block 10 on Monday. … [W]e could be done by the end of this year, but we’re way ahead of schedule.
The plant is owned by NRG Energy Inc. (NYSE: NRG) and MidAmerican Energy Holding Co., a division of Warren Buffet’s Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) and is currently producing nearly 250 megawatts of electricity. The electricity is being sold to PG&E Corp. (NYSE: PCG) under a 25-year power purchase agreement.
First Solar shares are getting hammered, down more than 15% at $20.49 in a 52-week range of $11.43-$99.50. The concern is that the company will be forced to pull forward revenue scheduled for 2013 and 2014 into this year, putting future revenue projections at risk.
Paul Ausick
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