The solar projects owned by Zhangfa have been approved and are located in Xinjiang Uygur autonomous region.
The collaboration will create First Solar's first commercial demonstration project in China.
First Solar will provide its products to Xinjiang during the first quarter of 2013.
"This agreement marks an important step forward in First Solar's efforts to support China's renewable energy goals with its advanced solar technologies and global solar industry expertise," said Bruce Yung, vice-president of business development at First Solar China. "I expect this will be the first of many opportunities for collaboration between First Solar and Chinese companies, both within China and globally."
Last week, Hanergy Holding Group Ltd, a private Chinese power generator, announced it had become the world's largest maker by output of thin-film solar modules, replacing First Solar, with an annual capacity of up to 3 gigawatts.