Positioning for Solar Growth in 2026: Why NextPower and First Solar Are Top Candidates

The solar energy sector is entering a pivotal phase in 2026, driven by accelerating decarbonization policies, declining technology costs, and surging demand for renewable infrastructure. Amid this backdrop, two companies-NextPower (NASDAQ: NXT) and First Solar (NASDAQ: FSLR)-stand out as compelling candidates for investors seeking exposure to the sector's long-term growth trajectory. Both firms have demonstrated robust financial performance, strategic agility, and technological leadership, positioning them to capitalize on the solar industry's consolidation and expansion.

NextPower: A High-Growth Play on Solar Tracking and Diversification

NextPower has emerged as a dominant force in the solar tracking systems market, with its advanced single-axis tracker technology driving utility-scale solar projects globally. In 2025, the company's shares , fueled by strong demand and operational execution. Its Q2 2025 results underscored this momentum: , , surpassing expectations.

What sets NextPower apart is its strategic diversification into adjacent solar technologies. The company is expanding into frames and inverters, creating a vertically integrated ecosystem that enhances margins and customer stickiness. This approach aligns with the industry's shift toward integrated solutions, where suppliers offering end-to-end systems gain a competitive edge. Additionally, NextPower's balance sheet is a fortress, providing flexibility to fund R&D, acquisitions, or geographic expansion.

Valuation metrics further support its growth narrative. , below the S&P 500 average, suggesting the market has not yet fully priced in its long-term potential. Analysts have raised their price target , reflecting confidence in its ability to sustain high-margin growth. For investors seeking a high-conviction play on solar's next phase, NextPower's innovation-driven model and strong liquidity position make it a compelling choice.

First Solar: A Value-Driven Leader in Thin-Film and Manufacturing Scale

First Solar, a pioneer in , has leveraged its technological expertise and U.S. manufacturing footprint to secure a dominant position in the utility-scale solar market. In Q3 2025, the company , driven by increased module sales to third parties. , and it raised its 2025 net sales guidance .

First Solar's strategic focus on domestic manufacturing is a key differentiator. With five U.S. , the company is aligning with U.S. policy priorities such as the guidelines and . .

The company's R&D pipeline further strengthens its long-term outlook. First Solar recently achieved a world record . These innovations could reduce module costs and improve efficiency, reinforcing its competitive edge. Despite challenges like trade tensions and U.S. tariff policies, .

Valuation-wise, , reflecting its status as a value play. Analysts project annual revenue growth , supported by its disciplined capital allocation and operational discipline. For investors prioritizing stability and cash flow, First Solar's combination of manufacturing scale, policy alignment, and R&D prowess offers a compelling risk-reward profile.

Strategic Entry Points and Sector Dynamics

Both NextPower and First Solar are well-positioned to benefit from the solar sector's structural tailwinds in 2026. However, their distinct strategies cater to different investor preferences. NextPower's growth-oriented model, with its focus on diversification and innovation, appeals to those seeking high-margin expansion. First Solar's emphasis on manufacturing scale and cost efficiency, meanwhile, suits investors prioritizing value and long-term cash flow.

The sector's consolidation phase also creates opportunities for strategic entry. NextPower's strong liquidity and First Solar's updated 2025 guidance despite lacking explicit 2026 figures suggest both companies are navigating near-term uncertainties with resilience. Moreover, First Solar's partnership with UbiQD and NextPower's foray into inverters highlight their adaptability in a rapidly evolving market.