During his presidential campaign, Joe Biden pledged to invest billions to combat climate change. AP News has learned that this opportunity made First Solar the largest domestic manufacturer of solar panels.
For context, executives, officials, and key investors from First Solar contributed at least $2 million to Democrats in 2020, including $1.5 million to Biden's campaign. Following Biden's victory, the company invested an additional $2.8 million in lobbying efforts directed at his administration and Congress, which included high-level meetings with top officials.
The company's pivot paid off as it emerged as a primary beneficiary of the estimated $1 trillion in environmental spending introduced by the Inflation Reduction Act, a landmark legislation signed by Biden in 2022 with only Democratic support.
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How First Solar Makes Its Money
The Inflation Reduction Act has massively benefited First Solar, providing billions in tax credits to increase domestic clean energy manufacturers. These credits, intended to support green energy businesses, can also be sold on the open market, increasing First Solar's revenue.
Since the enactment of this law, First Solar's stock price has doubled, and its profits have surged, boosted by new federal subsidies potentially worth up to $10 billion over a decade. This success has also resulted in substantial windfalls for a select group of Democratic donors who heavily invested in the company.
While founded in 1999, First Solar rose to popularity during the Obama administration, benefiting from billions in government-backed loans. During the Biden administration's development of new law rules, First Solar executives and lobbyists engaged multiple times with key officials.
First Solar will remain valuable to Biden's climate goals ahead of the 2024 US elections.
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