FirstSolar to team with Ordos City on major solar power plant in China desert (2,000 MW)

Pursuant to the MOU, signed in the presence of Chairman Wu Bangguo of the Standing Committee of the National People’s Congress of China, the solar project in Ordos will be built over a multi-year period. Phase 1 will be a 30 megawatt demonstration project that will begin construction by June 1, 2010 and be completed as soon thereafter as practicable. Phases 2, 3 and 4 will be 100 megawatts, 870 megawatts, and 1,000 megawatts. Phases 2 and 3 will be completed in 2014 and Phase 4 will be completed by 2019.

“This major commitment to solar power is a direct result of the progressive energy policies being adopted in China to create a sustainable, long-term market for solar and a low carbon future for China,” First Solar CEO Mike Ahearn said at the signing ceremony. “We’re proud to be announcing this precedent-setting project today. It represents an encouraging step forward toward the mass-scale deployment of solar power worldwide to help mitigate climate change concerns.”

The project will operate under a feed-in-tariff which will guarantee the pricing of electricity produced by the power plant over a long-term period.

“The Chinese feed-in tariff will be critical to this project,” Ahearn said. “This type of forward-looking government policy is necessary to create a strong solar market and facilitate the construction of a project of this size, which in turn continues to drive the cost of solar electricity closer to ‘grid parity’ – where it is competitive with traditional energy sources.”

The MOU contemplates that during the implementation of the initial phases of the project First Solar will actively review the possibility of module and supplier manufacturing sites in Ordos, and other considerations required to support a First Solar investment. First Solar also intends to facilitate expansion of the supply chains in China for thin film photovoltaic module production and for the recycling of photovoltaic modules after use.

“We are very pleased to be partnering with one of the solar industry’s global technology leaders in a project of such significance to Ordos’s low carbon future,” said Cao Zhichen, vice mayor of Ordos Municipal Government. “Discussions with First Solar about building a factory in China demonstrate to investors in China that they can confidently invest in the most advanced technologies available.”

The MOU sets forth the agreement in principle of the parties concerning the project and related activities. Final agreement between the parties is subject to the negotiation and execution of definitive agreements among the parties.

First Solar Hosts Chinese National Leadership Delegation Seeking Sustainable Energy Solutions

In an exceptional visit to the United States, a delegation of senior Chinese government leaders today visited First Solar (NASDAQ:FLSR) headquarters in Tempe to learn first-hand how the company’s low-cost solar technology can help contribute to China’s goal of achieving a low-carbon economic future as well as meeting China’s increasing demand for sustainable renewable energy.

Hosted by First Solar CEO Mike Ahearn, the delegation led by Chairman Wu Bangguo of the Standing Committee of the National People’s Congress of China met with First Solar executives to examine the company’s industry-leading solar panels. The officials also discussed the significant potential for the U.S. and China to address global climate change through the creation of solar markets that take advantage of the significant solar resources in both countries.

“If the U.S. and China work together and strongly support solar growth, we believe we can reduce the cost of solar electricity to ‘grid parity’ – where it is competitive with traditional energy sources – and create the blueprint for accelerated mass scale deployment of solar power worldwide to mitigate climate change,” Ahearn said.

The Chinese delegation’s visit to First Solar is part of an itinerary that will take them to Washington, D.C. to meet with Congressional leaders and the Obama Administration on a variety of energy, trade and business initiatives. Ahearn said he is encouraged that both China and the U.S. are becoming increasingly aware of the importance of promoting policies supportive of solar energy.

“As a nation, we need strong policy support to create a vibrant solar industry and the green jobs that come with it,” Ahearn said. “Solar represents one of our best opportunities to help address global climate change and energy security, and we should ensure that it becomes a permanent, sustainable source of renewable electricity for the United States and the world.”

First Solar recently announced agreements to build two large-scale solar power projects in Southern California. The installations, which will be among the largest of their kind, will have a generation capacity of 550 megawatts of photovoltaic electricity, enough to provide power to approximately 170,000 homes.

“We are interested in teaming with progressive government and community leaders to help them achieve their goals for mass-scale deployment of affordable solar power. We believe in investing in the communities we serve and enabling them with advanced technology and global best practices,” Ahearn said.

About First Solar

First Solar, Inc. (Nasdaq: FSLR) is changing the way the world is powered by creating truly sustainable solar energy solutions. First Solar manufactures solar modules with an advanced semiconductor technology and provides comprehensive PV system solutions. By constantly decreasing manufacturing costs, First Solar is creating an affordable and environmentally responsible alternative to fossil-fuel generation. First Solar modules are most effective when demand for traditional forms of energy is at its peak. First Solar set the benchmark for environmentally responsible product life cycle management by introducing the industry’s first prefunded, comprehensive collection and recycling program for solar modules. From raw material sourcing through end-of-life collection and recycling, First Solar is focused on creating cost-effective renewable energy solutions that protect and enhance the environment.