Global Energy Crisis Fuels Renewed Interest in Solar Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy FSLR?
Source: seekingalpha
- Policy Impact Analysis: The termination of the Section 25D Residential Clean Energy Credit by the One Big Beautiful Bill Act puts significant pressure on the residential solar market, increasing investment risks for related companies, particularly in a policy-driven environment.
- Market Growth Outlook: According to Ember, solar energy generation surpassed coal in 2025, with solar installations expected to represent over 51% of new energy installations in 2026, indicating strong growth potential for the industry, especially in Texas.
- Technological Advancements: The solar industry benefits from technological improvements and economies of scale, with advancements in battery storage significantly enhancing energy flexibility, thus accelerating the deployment of “anytime solar” solutions.
- Investment Opportunities: First Solar and Eos Energy are highlighted as key U.S. pure plays, with First Solar having sold out its U.S. production capacity for the next three years, while Eos is scaling a new type of utility-scale battery technology, attracting investor interest.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 214.570
Low
150.00
Averages
280.35
High
335.00
Current: 214.570
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 464 watts and 532 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Solar Reports Strong Q1 2026 Performance
- Significant Sales Growth: First Solar reported Q1 2026 net sales of $1.04 billion, a 24% year-over-year increase, driven by record sales in India and higher module volumes sold to third parties, indicating strong global demand for its products.
- Substantial Net Income Increase: The company achieved a net income of $347 million, or $3.22 per diluted share, reflecting a 65% year-over-year growth, while adjusted EBITDA rose to $520 million, exceeding initial expectations and showcasing enhanced profitability.
- Strong Contracted Sales Backlog: As of March 31, First Solar maintained a substantial contracted sales backlog of 47.9 GW, indicating robust future sales potential and market demand, further solidifying its leadership position in the solar industry.
- Optimistic Outlook: The company projects full-year 2026 net sales between $4.9 billion and $5.2 billion, with adjusted EBITDA between $2.6 billion and $2.8 billion, reflecting confidence in future market conditions, particularly supported by stable U.S. policies and tax incentives.
See More
Global Energy Crisis Fuels Renewed Interest in Solar Investments
- Policy Impact Analysis: The termination of the Section 25D Residential Clean Energy Credit by the One Big Beautiful Bill Act puts significant pressure on the residential solar market, increasing investment risks for related companies, particularly in a policy-driven environment.
- Market Growth Outlook: According to Ember, solar energy generation surpassed coal in 2025, with solar installations expected to represent over 51% of new energy installations in 2026, indicating strong growth potential for the industry, especially in Texas.
- Technological Advancements: The solar industry benefits from technological improvements and economies of scale, with advancements in battery storage significantly enhancing energy flexibility, thus accelerating the deployment of “anytime solar” solutions.
- Investment Opportunities: First Solar and Eos Energy are highlighted as key U.S. pure plays, with First Solar having sold out its U.S. production capacity for the next three years, while Eos is scaling a new type of utility-scale battery technology, attracting investor interest.
See More
US Solar Industry Faces Policy Uncertainty Amid China Ties
- Policy Uncertainty Impact: New policies from the Trump administration have led major banks and insurers to withdraw support from at least six U.S. solar factories linked to China, jeopardizing over a third of U.S. solar capacity, which complicates financing and stalls urgently needed solar projects.
- Manufacturing Growth Risks: Industry experts warn that restricting ties to China could undermine growth in U.S. manufacturing, particularly as electricity demand rises and utility costs soar, potentially leading to further increases in power prices.
- Compliance Challenges: While Chinese solar firms are attempting to comply with new regulations by selling off stakes in factories, most retain some form of profit-sharing or supply agreements, raising compliance issues that could affect eligibility for tax subsidies.
- Tightening Financing: Banks like Morgan Stanley, JPMorgan, and Goldman Sachs have scaled back tax-equity financing for certain solar projects due to concerns over future Treasury interpretations, while insurers are refusing coverage for companies at risk of losing clean energy tax credits, exacerbating industry uncertainty.
See More
First Solar Upgraded to Buy with Price Target Raised to $260
- Upgrade Announcement: Freedom Broker analyst Dmitriy Pozdnyakov upgraded First Solar from Hold to Buy and raised the price target from $250 to $260, citing potential upside from Section 232 policy support and steady operational execution as key factors.
- Quarterly Performance: First Solar reported Q1 revenue of $1.04 billion, a 23.6% year-over-year increase, slightly below analyst expectations but in line with broader consensus, driven primarily by a 30.9% increase in module shipment volumes.
- Strong Backlog: The company ended the quarter with a backlog of 47.9 gigawatts, down from 50.1 gigawatts in the previous quarter, indicating that strong shipments have outpaced new bookings, reflecting sustained market demand.
- Improved Profitability: Operating income rose 56.1% year-over-year to $345.3 million, exceeding consensus estimates, while operating margin increased from 26.1% to 33.0%, demonstrating the company's success in cost control and margin enhancement.
See More
First Solar Reports Record Q1 Earnings, Shares Surge
- Strong Performance: First Solar (FSLR) reported a record $1.04 billion in Q1 revenues, a 24% year-over-year increase, demonstrating robust performance despite a challenging solar demand environment, which boosts market confidence.
- Net Income Growth: Q1 net income rose to $347 million from $210 million, with earnings per share reaching $3.22, reflecting the company's success in improving margins and further solidifying its market position.
- Margin Improvement: Q1 gross margins increased to 47% from 41%, driven by a 31% rise in module sales volumes to 3.8 GW, alongside $418 million in tax credits, enhancing the company's profitability.
- Future Guidance: The company reaffirmed its full-year revenue guidance of $4.9 billion to $5.2 billion, with expected module sales of 17.0 to 18.2 GW, indicating confidence in future performance despite tariff pressures.
See More
First Solar Reports Record Q1 2026 Earnings with Strong Growth
- Strong Performance: First Solar achieved record net sales of $1 billion in Q1 2026, reflecting a 24% year-over-year growth, with net income of $347 million and diluted EPS of $3.22, surpassing analyst expectations and demonstrating robust market performance.
- Order Growth: The company secured gross bookings of 1.9 gigawatts in the first quarter, with 1.4 gigawatts coming from the key U.S. utility-scale market at an average selling price of approximately $0.35 per watt, indicating sustained competitiveness in critical markets.
- Technological Advancement: The successful launch of the CuRe technology in Perrysburg is set to be replicated across Series 6 and 7 production lines by mid-2028, potentially generating up to $600 million in additional revenue, further solidifying the company's technological edge.
- Future Outlook: Despite facing uncertainties regarding policies and tariffs, the company maintains its full-year 2026 guidance, expecting sales volumes between 3.4 and 4 gigawatts and adjusted EBITDA between $400 million and $500 million for Q2, reflecting management's confidence in future performance.
See More
First Solar Reports Strong Q1 2026 Performance
- Significant Sales Growth: First Solar reported Q1 2026 net sales of $1.04 billion, a 24% year-over-year increase, driven by record sales in India and higher module volumes sold to third parties, indicating strong global demand for its products.
- Substantial Net Income Increase: The company achieved a net income of $347 million, or $3.22 per diluted share, reflecting a 65% year-over-year growth, while adjusted EBITDA rose to $520 million, exceeding initial expectations and showcasing enhanced profitability.
- Strong Contracted Sales Backlog: As of March 31, First Solar maintained a substantial contracted sales backlog of 47.9 GW, indicating robust future sales potential and market demand, further solidifying its leadership position in the solar industry.
- Optimistic Outlook: The company projects full-year 2026 net sales between $4.9 billion and $5.2 billion, with adjusted EBITDA between $2.6 billion and $2.8 billion, reflecting confidence in future market conditions, particularly supported by stable U.S. policies and tax incentives.
See More
Global Energy Crisis Fuels Renewed Interest in Solar Investments
- Policy Impact Analysis: The termination of the Section 25D Residential Clean Energy Credit by the One Big Beautiful Bill Act puts significant pressure on the residential solar market, increasing investment risks for related companies, particularly in a policy-driven environment.
- Market Growth Outlook: According to Ember, solar energy generation surpassed coal in 2025, with solar installations expected to represent over 51% of new energy installations in 2026, indicating strong growth potential for the industry, especially in Texas.
- Technological Advancements: The solar industry benefits from technological improvements and economies of scale, with advancements in battery storage significantly enhancing energy flexibility, thus accelerating the deployment of “anytime solar” solutions.
- Investment Opportunities: First Solar and Eos Energy are highlighted as key U.S. pure plays, with First Solar having sold out its U.S. production capacity for the next three years, while Eos is scaling a new type of utility-scale battery technology, attracting investor interest.
See More
US Solar Industry Faces Policy Uncertainty Amid China Ties
- Policy Uncertainty Impact: New policies from the Trump administration have led major banks and insurers to withdraw support from at least six U.S. solar factories linked to China, jeopardizing over a third of U.S. solar capacity, which complicates financing and stalls urgently needed solar projects.
- Manufacturing Growth Risks: Industry experts warn that restricting ties to China could undermine growth in U.S. manufacturing, particularly as electricity demand rises and utility costs soar, potentially leading to further increases in power prices.
- Compliance Challenges: While Chinese solar firms are attempting to comply with new regulations by selling off stakes in factories, most retain some form of profit-sharing or supply agreements, raising compliance issues that could affect eligibility for tax subsidies.
- Tightening Financing: Banks like Morgan Stanley, JPMorgan, and Goldman Sachs have scaled back tax-equity financing for certain solar projects due to concerns over future Treasury interpretations, while insurers are refusing coverage for companies at risk of losing clean energy tax credits, exacerbating industry uncertainty.
See More
First Solar Upgraded to Buy with Price Target Raised to $260
- Upgrade Announcement: Freedom Broker analyst Dmitriy Pozdnyakov upgraded First Solar from Hold to Buy and raised the price target from $250 to $260, citing potential upside from Section 232 policy support and steady operational execution as key factors.
- Quarterly Performance: First Solar reported Q1 revenue of $1.04 billion, a 23.6% year-over-year increase, slightly below analyst expectations but in line with broader consensus, driven primarily by a 30.9% increase in module shipment volumes.
- Strong Backlog: The company ended the quarter with a backlog of 47.9 gigawatts, down from 50.1 gigawatts in the previous quarter, indicating that strong shipments have outpaced new bookings, reflecting sustained market demand.
- Improved Profitability: Operating income rose 56.1% year-over-year to $345.3 million, exceeding consensus estimates, while operating margin increased from 26.1% to 33.0%, demonstrating the company's success in cost control and margin enhancement.
See More
First Solar Reports Record Q1 Earnings, Shares Surge
- Strong Performance: First Solar (FSLR) reported a record $1.04 billion in Q1 revenues, a 24% year-over-year increase, demonstrating robust performance despite a challenging solar demand environment, which boosts market confidence.
- Net Income Growth: Q1 net income rose to $347 million from $210 million, with earnings per share reaching $3.22, reflecting the company's success in improving margins and further solidifying its market position.
- Margin Improvement: Q1 gross margins increased to 47% from 41%, driven by a 31% rise in module sales volumes to 3.8 GW, alongside $418 million in tax credits, enhancing the company's profitability.
- Future Guidance: The company reaffirmed its full-year revenue guidance of $4.9 billion to $5.2 billion, with expected module sales of 17.0 to 18.2 GW, indicating confidence in future performance despite tariff pressures.
See More
First Solar Reports Record Q1 2026 Earnings with Strong Growth
- Strong Performance: First Solar achieved record net sales of $1 billion in Q1 2026, reflecting a 24% year-over-year growth, with net income of $347 million and diluted EPS of $3.22, surpassing analyst expectations and demonstrating robust market performance.
- Order Growth: The company secured gross bookings of 1.9 gigawatts in the first quarter, with 1.4 gigawatts coming from the key U.S. utility-scale market at an average selling price of approximately $0.35 per watt, indicating sustained competitiveness in critical markets.
- Technological Advancement: The successful launch of the CuRe technology in Perrysburg is set to be replicated across Series 6 and 7 production lines by mid-2028, potentially generating up to $600 million in additional revenue, further solidifying the company's technological edge.
- Future Outlook: Despite facing uncertainties regarding policies and tariffs, the company maintains its full-year 2026 guidance, expecting sales volumes between 3.4 and 4 gigawatts and adjusted EBITDA between $400 million and $500 million for Q2, reflecting management's confidence in future performance.
See More
