Swift Current alleges widespread module defects in lawsuit against First Solar

A solar developer, Swift Current Energy, is suing panel maker First Solar, claiming it knowingly sold defective solar panels and hid the problems. The lawsuit, filed in New York state court, covers more than 2.4 million thin-film panels used in large utility-scale solar farms, including an 800-megawatt project in Illinois. Swift Current says it paid over $360 million for the panels and that they produced far less power than promised almost as soon as they were installed in 2023 and 2024.

The complaint alleges two manufacturing flaws. One, called an "edge grind defect," was already disclosed by First Solar in 2024 and involves debris building up on panel glass during production. The other, a "substrate defect," has not been previously made public and allegedly stems from a 2021 manufacturing change that kept a key layer of the panel from forming correctly, cutting power output. Swift Current also claims First Solar uses a testing method that temporarily boosts panel performance numbers, masking a separate issue where output drops in cold weather.

This case involves large commercial solar farms, not home rooftop systems, so it does not directly affect homeowners with solar panels on their own roofs. First Solar's panels are mostly used in utility-scale projects rather than residential installations. Still, the lawsuit is worth watching if you're tracking the reliability of solar technology broadly, since it raises questions about how panel performance is tested and guaranteed. The case is ongoing, with both sides due in court on November 16, 2026.