Is FSLR (First Solar, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FSLR is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (2.37% vs ≤33% threshold), interest income ratio (1.57% vs ≤5% threshold), and cash & securities ratio (13.57% vs ≤33% threshold).

First Solar, Inc. is a global leader in renewable energy, specializing in the design and manufacture of photovoltaic (PV) solar energy solutions. Operating across the US, Japan, Europe, and beyond, the company produces advanced cadmium telluride solar modules that convert sunlight into electricity for utilities, independent power producers, and commercial developers. For Muslim investors using the AAOIFI methodology, First Solar is currently classified as a Halal stock. The company successfully passes the core business activity screen, as renewable energy generation is a permissible industry, and it cleanly passes all three critical financial ratio screens required for shariah compliance. From an Islamic finance perspective, First Solar boasts an exceptionally strong balance sheet with a debt-to-market cap ratio of just 2.4%, far below the 33% limit. Additionally, its interest-bearing cash and securities sit at a comfortable 13.6%, while interest income accounts for only 1.57% of total revenue, minimizing exposure to impermissible income. Because there is no scholarly debate regarding the permissibility of solar technology, investors can feel confident in the core business. Moving forward, Muslim shareholders should simply monitor the company's quarterly interest income to ensure it remains below the 5% threshold as cash reserves grow. First Solar, Inc. operates in the Energy sector under the Solar industry and is headquartered in Phoenix, AZ, US. The company is led by CEO Mark R. Widmar and employs approximately 8,100 people.

FSLR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. FSLR passed 4 of these 4 screens.

Although FSLR passes all shariah screens, it does earn $81.8M in interest income (1.57% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.57 to purify the income.

FSLR was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.