This one solar stock could be a rare winner from Trump’s big beautiful bill

Solar stocks faced a difficult battle in 2025 as President Donald Trump’s administration attempted to remove the clean energy tax credit and redirect attention and funds from the wind, solar and hydrogen initiatives.

These actions against clean energy showed a harsh difference from the landscape under former President Joe Biden, culminating in Trump’s “one big beautiful bill act,” his tax and spending bill.

Solar stocks are expected to suffer mostly as a result of laws that passed the House today following Senate votes earlier this week. However, the First Sun (FSLR) could be an unlikely beneficiary.

Thanks to First Solar’s vertically integrated, US-based production, it qualifies for a carve-out of a bill that holds tax credits on certain American-made components of large-scale renewable energy projects. Wolfe research says this is “intended” to support First Solar.

Based in Tempe, Arizona, First Solar is a leading US utility scale solar manufacturer known for its US-based supply chain and thin technology.

FSLR shares are valued at $18.3 billion in market capitalization, and have recently recovered annual losses and are now up 5% in 2025. Initially, the stock struggled in stages of favorable tax credits, tariffs on imported solar panel components, and advanced financial costs, which saw a rise in slowing demand.

However, FSLR exhibits an attractive rating profile. Its price return rate is 11.2 times, a 53% discount compared to the median sector, indicating that the stock is relatively cheap.

The One Big Beautiful Bill Act introduces drastic changes that are expected to send shockwaves through the solar industry.

This version was passed in the House of Representatives today, heading for Trump’s signature. From this year onwards, we will eliminate solar tax credits for homes. Commercial solar projects that take advantage of the 45Y or 48E tax credit must have started construction by 2026 to qualify or If construction begins later, please work by the end of 2027.

Together, these changes could create a major headwind for solar developers and render economically unviable projects after 2027.

However, the first solar could potentially give better shots in survival than your colleagues. As its core business is useful for the commercial market, the immediate phase-out of residential solar tax credits is not unaffected. Additionally, this week’s update to the law states that “if it is produced in the same facility as the larger integrated component and at least 65% of the total cost of the larger component is domestic, subcomponents of the reclamation project that are eligible for tax credits will be eligible for tax credits.”