First Solar has bought the 150 megawatt Solar Gen 2 project in California from an affiliate of Goldman Sachs, Energy Power Partners and a third partner. San Diego Gas & Electric will buy the power under a 25 year agreement.

It’s interesting to see First Solar getting further into utility scale solar development. The company has said that 40 megawatts of solar modules from another supplier were already purchased and will be used but it will supply the rest. By taking control of solar farm development First Solar guarantees that it has customers for its solar panels.

It also can be quite competitive because it only has to worry about making money on the sale of the solar module and the electricity from the farm. As a solar developer it can essentially get its solar panels at cost. Which is probably a very good thing right now, especially since there continue to be solar panels coming out of China that are likely being sold at or below cost.