Innovation

First Solar has been a leader in solar power innovations since its founding in 1999. Where photovoltaic cells are usually made with a crystalline-silicon as a semiconductor, First Solar uses a material called cadmium-telluride, which has been proven to be cheaper while at the same time lowering the carbon footprint and water use of the manufactured solar panels. This technology allows their panels to be made more cost-effective while also being more environmentally friendly.

First Solar’s original location in Perrysburg, Ohio was able to make use of the glass made in neighboring city Toledo, making their transportation more efficient. Efficiencies in other areas were implemented as well, including the manufacturing process. First Solar condensed their manufacturing to take place in a single building, reducing production time for a single panel from four days to just four and a half hours. While the cadmium-telluride cells have come under some scrutiny for their toxicity, First Solar was able to counter this by creating a first-of-its-kind global recycling program for solar technology in 2005. This recycling program allows up to 90% of the panel’s components to be reused in various ways. The glass can be reprocessed into other glass products, encapsulants are recycled into rubber products, and the semiconductors themselves can be reused in future First Solar modules.  The average cadmium-telluride solar panel has a lifetime of 30 years, but recycling semiconductors can extend their lifespan to 1,200 years.

When First Solar’s Head of Sustainability and ESG, Karen Drozdiak, began her education and career, sustainability was not as widely discussed as it is today. She got her start in international relations and diplomacy but was always interested in the field of energy policy. First Solar contacted her while she was living abroad to ask her to join their team as a consultant to ensure their business was on the right track to continue sustainably. She began to research various ESG frameworks and worked to formulate a working sustainability report for the company. This was a tremendous undertaking, as First Solar was the first solar company to start doing sustainability reporting. First Solar’s focus is not only on creating cheaper, more widely available solar technology for all, but also vetting each piece of its supply chain to ensure that human rights are being protected while also fighting against climate change by reducing carbon footprint and water usage throughout the manufacturing process. There is intense focus on the entire life cycle of First Solar’s products, ensuring that materials are responsibly sourced, those involved in the entire supply chain are following ethical business practices for their stakeholders, having a streamlined and efficient manufacturing process, and considering the product’s end-of-life by implementing a sustainable recycling program to reduce the amount of waste products left to clean up. Drozdiak said, “Evaluating the entire life cycle of the product is the best way to measure how the company is doing in relation to their sustainability goals, which are directly correlated with the UN Sustainable Development Goals.”

Manufacturing Cadmium-Telluride Solar Panels

Inspiration

The founder of First Solar, Harold McMaster, was an entrepreneur and inventor who held over 100 patents for various inventions. McMaster held a master’s degree in physics, mathematics, and astronomy and was the first research physicist employed at Libbey Owens Ford Glass in Toledo, Ohio. In 1999, One of McMaster’s many startup companies, Glasstech Solar, evolved into First Solar in Perrysburg, Ohio. This allowed the company to stay close to glass suppliers in Toledo, therefore reducing transportation costs and helping to lower carbon footprint. In the early days of the company, McMaster was researching amorphous silicon and decided to switch gears and invest in thin-film technology and cadmium-telluride photovoltaic cells. This change was the primary innovation that put First Solar ahead in the industry. From there, First Solar continued to innovate their product itself as well as its processes, finding ways to eliminate waste across the product life cycle.

Overall impact

First Solar’s innovative technologies have pushed them to the front of the pack in terms of solar manufacturing companies. They have continuously lowered the cost of solar power over time, setting a standard for the rest of the industry and giving them a competitive advantage. The next step is to find ways to compete with the prices of more conventional and mainstream energy options. Being able to reduce the production time from days to hours allows First Solar to scale their production to move from selling individual modules to participating in larger projects. The introduction of a state-of-the-art recycling program paves the way for the entire industry to strive for major waste reduction and sustainable use of resources. Those who purchase First Solar products are offered recycling service agreements that also help to lower their costs and ensure that they are handling their solar panels responsibly at the end of the product’s life. Consumers are responsible for removing the modules, packaging, and returning the components to First Solar for processing, but they handle the rest. These agreements have no up-front fees for consumers and have 2-year terms to allow for pricing adjustments as recycling technology improves and becomes cheaper as time goes on. Ms. Drozdiak also said that First Solar is differentiating from competitors by “having good governance in place but also being transparent and then also having our performance third-party validated by credible standards and eco-labels.”

Business benefit

As the company grew, sustainability increased in importance, leading to the establishment of Ms. Drozdiak’s role and the beginning of sustainability reporting using the UN Sustainable Development goals as building blocks for the company’s annual sustainability report. Ms. Drozdiak said, “The focus on ESG started when there were only a handful of investors, socially responsible investors, that were interested in sustainability disclosures and performance.” Considerable amounts of progress have been made in terms of investors getting involved. Ms. Drozdiak said, “Now it’s really mainstream investors that really care about it. More investors are becoming more aware of the importance of sustainability and choosing to invest in sustainable companies.” Direct links between First Solar’s Key Performance Indicators and the UN Sustainable Development Goals can be found throughout the sustainability report. As of 2024, the report notes goals tied to at least eight of the 17 UN Sustainable Development Goals.

Social and environmental benefit

Society and the environment both benefit from First Solar’s innovations in ways directly related to the UN Sustainable Development Goals. These benefits are outlined in the First Solar sustainability report with reference to the goals they achieve. The most obvious benefit First Solar provides aligns with UN SDG #7, ensuring access to affordable, reliable, sustainable and modern energy for all, and #13, taking urgent action to combat climate change and its impacts. Their entire business model is built on making solar energy cheaper and more accessible to a wide consumer base while reducing its carbon and water footprints.

In alignment with First Solar’s commitment to recycling, one grant provided by First Solar is a $15,000 award to support Styrofoam recycling workforce development programs at Lott Industries, Inc. which has increased Styrofoam recycling at Lott Industries (aligning with UN SDG Goal #8, to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all). In addition to increasing employment growth at Lott Industries, the program involved collecting and recycling Styrofoam from individuals in the community, which meets UN SDG Goal #12, to ensure sustainable consumption and production patterns.

For UN SDG #10, reducing inequality within and among countries, First Solar supported a Carbon Footprint Reduction Symposium with solar industry professionals and an organization called Black Girls Do Engineer Corporation that educated attendees regarding how to do research and make professional presentations. Attendees had an opportunity to present their research, with the top three presenters being awarded scholarships for their efforts.

Sustainable water usage is another of First Solar’s major business concepts, so it makes sense for them to have goals aligned with UN SDG #6 (ensuring availability and sustainable management of water and sanitation for all) as well. Their target for 2028 is to achieve 58% global water usage per watt of energy produced. From 2020-2023, First Solar was able to reduce manufacturing water intensity by 48% and an increase in water recycling initiatives resulted in an 88% increase in water recycling.

Interview

Karen Drozdiak, Head of Sustainability and ESG