First Solar Lands First Big U.S. Utility Contract?

First Solar, Inc., the world's largest manufacturer of thin-film solar modules, has booked more than $6 billion in contracts over the next five years for the sale of its 3.2-gigawatt solar module arrays. These long-term supply contracts, however, are with twelve European project developers and system integrators. As of its fiscal year ended December 27, 2007, 98.8 percent of its revenue came from overseas clients.

Rumors are circulating, however, that the Phoenix-based company will soon announce its first successful ingress into the U.S. utility market. The company, which brought in over $500 million in revenue last year, is being quiet on talk that it won part of an $875 million contract purportedly with Southern California Edison -- to supply solar arrays for a 7.5-megawatt project, with an option to increase the size of the deal to 21 megawatts. A First Solar spokeswoman would not confirm or deny the existence of the contract, saying only that the company had entered "the 30-day quiet period before first-quarter March 2008 earnings release."

To position the solar company for growth in the U.S. utilities market, the company acquired Turner Renewable Energy, LLC, which has experience designing and building solar installations for utilities and large commercial users in the United States. First Solar acquired the installation company from cable entrepreneur Ted Turner, for $34.3 million last November.