First Solar Sees Strength in Trump's Tax Law, Boosts FY Net Sales Forecast

First Solar CEO Mark Widmar says the company is in a stronger position after President Donald Trump's tax-and-spending law than after the 2022 climate law. The law is driving demand for domestically produced solar panels and placing restrictions on manufacturing tax credits for products tied to China. First Solar's shares rose 4.2% in late trading Thursday in New York.

First Solar Inc. (FSLR.O) has seen its relative position in the solar manufacturing industry strengthened following the passage of President Donald Trump’s tax-and-spending law, according to CEO Mark Widmar. The law, which includes restrictions on manufacturing tax credits for products tied to China, has driven demand for domestically produced solar panels. This development has been favorable for First Solar, as the company’s shares rose 4.2% in late trading on Thursday in New York.

The tax-and-spending law, often referred to as the "One Big, Beautiful Bill Act" (OBBBA), is expected to phase out solar and wind tax credits by 2028. However, the U.S. tariffs imposed on imports from countries like Indonesia, India, and Laos, which were requested by U.S. solar panel makers including First Solar, are expected to improve the outlook for solar companies. CEO Widmar noted that the recent policy and trade developments have, on balance, strengthened First Solar's position in the industry [2].

First Solar has raised its annual sales forecast, expecting current-year net sales to be between $4.9 billion and $5.7 billion, up from its previous projection of $4.5 billion to $5.5 billion. This increase is partly attributed to higher prices for its products due to the additional tariffs on foreign-made panels. The solar industry, which has faced challenges such as lackluster demand and high interest rates, is now bracing for the impact of Trump’s policies related to renewable energy [1].

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’s improved outlook aligns with analysts' estimates, who, on average, projected the company's 2025 net sales at $5.07 billion [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-31/first-solar-says-trump-s-tax-and-spending-law-makes-it-stronger
[2] https://www.reuters.com/sustainability/climate-energy/first-solar-raises-annual-sales-outlook-expects-higher-prices-due-tariffs-2025-07-31/