Solar Stocks Rally: First Solar ETFs Bask In Treasury Tax Boost - Bloomberg Expert Insights

Solar stocks, led by First Solar, rallied after the US Treasury and IRS issued new tax credit guidance. The guidance eliminates the "5% safe harbor" rule for large-scale projects, making it easier for developers to secure credits. ETFs such as TAN, ICLN, and QCLN, which track clean energy and solar stocks, also gained, potentially benefiting from the new policies. These ETFs provide a diversified means to tap the solar boom without betting on individual stocks.

Solar stocks, led by First Solar (FSLR), have experienced a significant rally following the issuance of new tax credit guidance by the US Treasury and IRS. The guidance eliminates the "5% safe harbor" rule for large-scale projects, making it easier for developers to secure tax credits. This positive regulatory development has boosted investor confidence in the renewable energy sector.

First Solar's stock price surged by 12.13% on August 17, 2025, reaching a weekly high of $201.88 [1]. The company's shares have been trading up by 13% following optimistic developments in solar technology advancements [1]. Analysts have raised price targets for First Solar, with GLJ Research increasing its target to $214.06 from $172.53 and UBS setting a new target of $275 [1].

The new tax credit guidance is expected to benefit ETFs such as TAN, ICLN, and QCLN, which track clean energy and solar stocks. These ETFs provide a diversified means to tap into the solar boom without betting on individual stocks. The new policies are anticipated to drive demand for U.S. utility-scale solar projects, which are currently outpacing supply [2].

First Solar's financial performance has been robust, with the company reporting stronger-than-expected financial results for the second quarter of 2025. The company achieved earnings per share of $3.18, surpassing analyst projections of $2.66, and revenue reached $1.1 billion compared to the anticipated $1.04 billion [2]. The company's gross margin held steady at a healthy 42.8%, while its EBIT margin reached 31.8%, demonstrating operational efficiency [1].

The convergence of positive analyst sentiment, solid operational metrics, and favorable regulatory enhancements results in a positive forecast for First Solar. The company's future shines brighter within the evolving green energy landscape, with key support/resistance framed around $200 to $250 [1]. As trader confidence grows, First Solar is poised to sustain its upward momentum, strategically navigating both operational and market-driven opportunities in the pursuit of sustainable growth and market leadership.

References:
[1] https://stockstotrade.com/news/firstsolarinc-fslr-news-2025_08_17/
[2] https://www.investing.com/news/analyst-ratings/first-solar-stock-named-top-pick-by-ubs-on-positive-irs-guidance-93CH-4197628