First Solar: Rising Fossil Fuels Keep Solar Utilities Competitive Without Tax Incentives
Rising fossil fuel prices could drive demand for solar farm construction, making solar utilities competitive without tax incentives. Solar farms offer a stable cost structure, increasingly attractive to utilities and large power users, with solar-derived electricity costs now undercutting fossil fuels.
Rising coal, crude oil, and natural gas prices may drive sustained demand for solar farm construction. Solar farms offer a stable 20- to 30-year cost structure, attractive to utilities and large power users. According to Lazard's analysis, solar-derived electricity costs now undercut even the lowest-cost fossil fuels. This makes solar utilities competitive without tax incentives. The growth of AI data centers and electric vehicle sales could accelerate electricity demand, supporting long-term solar adoption. As a result, solar utilities like First Solar may benefit from the rising fossil fuel prices.
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