Is Perovskite the Future of Solar Panels? Here's First Solar's Take

Recently, perovskite solar cells have emerged as a promising alternative to traditional silicon panels, offering potentially higher efficiency and lower production costs. With the increased demand for thin-film photovoltaics (PV), First Solar Inc. FSLR has also been investing in perovskite technology, which is used to build thin-film solar panels. 

Notably, in 2023, FSLR acquired Swedish perovskite specialist Evolar AB in a bid to develop and commercially scale high-efficiency thin-film PV technology.
Moreover, in July 2024, the company revealed that it is establishing a perovskite development line at its Perrysburg, OH, campus as part of a broader research and development (R&D) initiative. This development forms part of First Solar’s $370 million Jim Nolan Center for Solar Innovation — a 1.3 million square foot R&D hub focused on next-generation thin film and tandem solar modules. 

As of March 2025, FSLR continued with its ongoing research into perovskite crystals as part of its efforts in thin-film technology, with a focus on improving the efficiency and stability of this technology to ultimately develop a commercially scalable perovskite product.

Another Stock Warranting a Look

Perovskite solar cells have shown remarkable progress in recent years, with rapid efficiency improvements, from 3% in 2009 to over 26% as of 2024, in small-area devices (according to a report by the U.S. Department of Energy). However, the perovskite-based solar panel is still in a nascent stage. R&D is ongoing for scalability and not many publicly traded companies are currently investing in it. 

First Solar apart, JinkoSolar JKS is also investing in perovskite to reap the benefits of this thin-film technology.  

In January 2025, JinkoSolar announced that it has achieved a significant breakthrough in the development of its N-type TOPCon-based perovskite tandem solar cell, which achieved an impressive conversion efficiency of 33.84%. This highlighted the compatibility of TOPCon as a mainstream solar cell technology with the next-generation perovskite/silicon tandem cell technology, paving the way for new possibilities in the development of the photovoltaic industry.

A Solar Panel Manufacturer With Great Potential

Although solar module manufacturer Canadian Solar CSIQ currently does not invest in perovskite technology, it is actively enhancing its module efficiency through advancements in TOPCon (Tunnel Oxide Passivated Contact) cell technology and other innovations. Notably, in May 2025, CSIQ presented a new TOPCon solar module series with power conversion efficiency spanning from 23.3% to 24.4%. As Canadian Solar strives to improve the efficiency of its solar modules, it might explore and research perovskite-based solutions in the near future.

The Zacks Rundown for FSLR

Shares of FSLR have gained 36.6% in the past three months compared with the industry’s 35.5% growth.

The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 9.57X compared with its industry’s average of 17.02X.

The Zacks Consensus Estimate for FSLR’s near-term earnings has moved south over the past 60 days, except for 2026.

FSLR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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