July 31 (Reuters) - First Solar raised its annual sales forecast on Thursday, as the U.S. solar panel maker expects higher prices for its products following additional tariffs on foreign-made panels.

Shares of the Tempe, Arizona-based company rose 4.5% after the bell.

The solar industry, which has grappled with lackluster demand and high interest rates, is now bracing for the impact of U.S. President Donald Trump's policies related to renewable energy as well as his plans to impose tariffs on most imports.

While Trump's sweeping tax and spending bill - dubbed the "One Big, Beautiful Bill Act" (OBBBA) - aims to phase out solar and wind tax credits by 2028, the U.S. tariffs are expected to improve the outlook for solar companies.

"In our view, the recent policy and trade developments have, on balance, strengthened First Solar's relative position in the solar manufacturing industry," CEO Mark Widmar said.

Earlier this month, U.S. solar panel makers, including First Solar, asked the U.S. Commerce Department to impose tariffs on imports from Indonesia, India and Laos, as they sought to protect their recent investments and better compete with Chinese rivals.

The industry is also expected to benefit from rising demand for power as corporations and governments increasingly adopt cleaner sources of power to combat climate change.

First Solar now expects current-year net sales to be between $4.9 billion and $5.7 billion, compared with its previous projection of $4.5 billion and $5.5 billion.

Analysts, on average, estimated the company's 2025 net sales at $5.07 billion, according to data compiled by LSEG.