Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Sparks

First Solar Is the Only Winner of Trump’s Tariffs

Just about every other renewable energy company is taking a beating today.

Donald Trump.
Heatmap Illustration/Getty Images

American solar manufacturer First Solar may be the big winner from the slew of tariffs Donald Trump announced yesterday against the world’s trading partners. Sorry, make that basically the only winner among renewable energy companies.

In a note to clients this morning, Jefferies analyst Julien Dumoulin-Smith wrote that “in this inflationary environment, we expect FSLR's domestic manufacturing to be the clear winner” in the long term.

For everyone else in the renewable industry — for example, an equipment manufacturer like inverter company Enphase, which has been trying to move its activities away from China — “we perceive all costs to head higher, contributing to a wider inflation narrative.”

First Solar’s’s stock is up almost 4% in early trading as the broader market reels from the global tariffs. Throughout the rest of the solar ecosystem, there’s a sea of red. Enphase is down almost 8%. Chinese inverter manufacturer Sungrow is down 7%. Solar installer Sunrun’s shares are down over 10%. The whole S&P 500 is down 4%, while independent power producers such as Vistra and Constellation and turbine manufacturer GE Vernova are down around 10% as expected power demand has fallen.

First Solar “is currently the largest domestic manufacturer of solar panels and is in the midst of expanding its domestic manufacturing footprint, which should serve as a competitive advantage over its peers,” Morgan Stanley analyst Andrew Perocco wrote in a note to clients Thursday morning.

Nor has First Solar been afraid to fight for its position in the global economy. It is part of a coalition of American solar manufacturers that have been demanding protections against Southeast Asian solar exporters, claiming that they are part of a scheme by Chinese companies to avoid preexisting solar tariffs. In 2023, 80% of American solar imports came from Southeast Asia, according to Reuters.

Tariff rates specific to solar components manufactured in those countries will likely be finalized later this month. Those will come in addition to the new tariffs, which will go into effect on April 9.

But the biggest question about First Solar — and the American renewables industry as a whole — remains unanswered: the fate of the Inflation Reduction Act. The company benefits both from tax credits for advanced manufacturing and investment and production tax credits for solar power.

“Government incentive programs, such as the Inflation Reduction Act of 2022 (the “IRA”), have contributed to this momentum by providing solar module manufacturers, project developers, and project owners with various incentives to accelerate the deployment of solar power generation,” the company wrote in a recent securities filing.

If those tax credits are at risk, then First Solar may not be a winner so much as the fastest runner ahead of an advancing tide.

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Sparks

Solar for All May Be on the Chopping Block After All

The $7 billion program had been the only part of the Greenhouse Gas Reduction Fund not targeted for elimination by the Trump administration.

The EPA blocking solar power.
Heatmap Illustration/Getty Images

The Environmental Protection Agency plans to cancel grants awarded from the $7 billion Solar for All program, the final surviving grants from the Greenhouse Gas Reduction Fund, by the end of this week, The New York Times is reporting. Two sources also told the same to Heatmap.

Solar for All awarded funds to 60 nonprofits, tribes, state energy offices, and municipalities to deliver the benefits of solar energy — namely, utility bill savings — to low-income communities. Some of the programs are focused on rooftop solar, while others are building community solar, which enable residents that don’t own their homes to access cheaper power.

Keep reading...Show less
Green
Sparks

Grassley Holds Up Trump Treasury Nominees to Protect Renewables Development

Along with Senator John Curtis of Utah, the Iowa senator is aiming to preserve the definition of “begin construction” as it applies to tax credits.

John Curtis and Charles Grassley.
Heatmap Illustration/Getty Images

Iowa Senator Chuck Grassley wants “begin construction” to mean what it means.

To that end, Grassley has placed a “hold” on three nominees to the Treasury Department, the agency tasked with writing the rules and guidance for implementing the tax provisions of the One Big Beautiful Bill Act, many of which depend on that all-important definition.

Keep reading...Show less
Yellow
Sparks

Interior Order Chokes Off Permits for Solar and Wind on Federal Lands

The department creates a seemingly impossible new permitting criteria for renewable energy.

Doug Burgum.
John McDonnell/Getty Images

The Interior Department released a new secretarial order Friday saying it may no longer issue any permits to a solar or wind project on federal lands unless the agency believes it will generate as much energy per acre as a coal, gas, or nuclear power plant.

Hypothetically, this could kill off any solar or wind project going through permitting that is sited on federal lands, because these facilities would technically be less energy dense than coal, gas, and nuclear plants. This is irrespective of the potential benefits solar and wind may have for the environment or reducing carbon emissions – none of which are mentioned in the order.

Keep reading...Show less
Yellow