Welcome back, climate leaders.

In today’s edition:

• 😎 First Solar a major benefactor of IRA subsidies

• 🔌 Hertz continues to expand its EV fleet

• 🔥 July’s hot temps felt across the globe

Read time: 5 minutes

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BIG STORY

First Solar sees massive benefits from IRA

Driving the news: First Solar, the Arizona-based solar-panel manufacturer, is set to receive approximately $710 million in subsidies this year, accounting for nearly 90% of its projected operating profit. These subsidies were introduced by the U.S. government to promote domestic renewables production.

What's happening: First Solar anticipates capturing up to 60% of the U.S. market share for large-scale solar installations this year due to government policies favoring domestically manufactured components.

• Despite a series of disappointing earnings, the company's shares have more than doubled since the start of 2022.

• First Solar has pledged over $2.8 billion for new manufacturing and research facilities, including a recently announced factory.

Why it matters: First Solar's success can be attributed to a combination of persistence, strategic planning, and favorable U.S. energy policies.

• By building factories and a local supply chain, the company gained an advantage over low-cost competitors, particularly from China.

• The IRA aims to provide approximately $1 trillion in support for clean-energy projects, already encouraging around $110 billion in announcements for factories and facilities related to wind turbines, battery components, and other clean-energy infrastructure.

What's Next: The company aims to promote fair competition by lobbying for a level playing field against subsidized Chinese manufacturers.

• In an increasingly commoditized and low-margin business, First Solar's use of thin-film technology has allowed it to compete with industry giants, establishing itself as a key player in the solar-panel market.

🌶 Hot take: The sharp decline in solar costs is a good sign for deployment and adoption, but hurts margins. Policy focused on making domestic companies competitive with China is critical to the ongoing success of the renewables industry.

HOT TOPICS

1. 🚗 Hybrids: Ford is developing numerous new hybrid models that offer greater efficiency and enhanced capabilities due to batteries. The move comes as the automaker faces significant losses in its electric vehicles unit.

2. 🔌 EV Fleets: Hertz expands EV fleet and city partnerships, making EVs 11-12% of the rental fleet. Denver, Atlanta, Houston, and Orlando join public-private collaborations to increase EV availability and charging infrastructure for rentals and ride-sharing.

3. 💰 Startup funding: OneTrust secures $150M at a $4.5B valuation, totaling over $1B raised, aiming to build a trusted platform for privacy, risk, and compliance.

4. 🇨🇳 China: Overseas investment in metals and mining is set to reach a record high, driven by its pursuit of resources for electric vehicle production.

5. 😎 Solar: Federal officials are urging applications for a $7 billion solar grant competition designed to support low-income communities. The first deadline to apply is July 31.

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TODAY’S DATA

81%

A new report reveals that around 80% of the global population endured unusually hot temperatures in July, mainly due to human-caused climate change. The analysis covers 200 countries and 4,700 cities.

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