Policy Shift Fails to Dent First Solar’s Near-Term Momentum Amid Tax Credit Phase-Out
First Solar (FSLR) emerges as a standout investment opportunity, bolstered by a clear medium-term demand outlook and recent policy shifts. The accelerated phase-out of tax credits under the "Big Beautiful Bill" could spur a near-term surge in demand as developers race to secure projects before 2028. Despite an 18% stock decline last week, the company's cyclical potential remains compelling.
Utility-scale solar projects face a sharp reduction in tax incentives, sliding from 30% to zero by 2028. Developers retain the ability to lock in higher credits through early construction starts, with Section 4 provisions preserving credit transferability. Market volatility appears disconnected from these fundamental drivers.