3 Solar Stocks Offering Opportunity Despite Ongoing Industry Weakness

Why It Matters

The divergence between robust demand and policy‑driven risk creates selective opportunities, making these companies attractive for investors seeking exposure to the upside of utility‑scale solar while navigating near‑term volatility.

Key Takeaways

• U.S. solar capacity projected to triple to 769 GW by 2036
• OBBBA forces projects to start by July 2026 for tax credits
• Canadian Solar’s Q1 shipments fell 64% YoY, but battery shipments rose 142%
• Enphase shipped 1.39 M microinverters Q1, launching PowerMatch for IQ Battery 10C
• First Solar reported $1.04 B Q1 sales, 24% YoY increase, backlog 47.9 GW

Pulse Analysis

Demand for solar power in the United States is accelerating beyond traditional utility‑scale projects, fueled by soaring electricity consumption at AI‑driven data centers and corporate sustainability pledges. Battery‑storage integration is becoming a standard complement, offering resilience against grid disruptions and peak‑price spikes. This macro backdrop underpins SEIA’s forecast that installed solar capacity will climb from 279 GW in 2025 to 769 GW by 2036, positioning solar as the dominant source of new generation capacity.

Policy uncertainty, however, is tempering that momentum. The One Big Beautiful Bill Act slashes the eligibility window for the federal Investment Tax Credit, requiring construction to commence by July 2026 or service entry by the end of 2027, which raises financing risk and may delay projects still navigating permitting. Simultaneously, heightened U.S. tariffs on imported modules and California’s shift to a Net Billing Tariff erode residential economics, contributing to a 2 % decline in residential installations in 2025. These headwinds are prompting developers to prioritize utility‑scale and commercial ventures where economies of scale can absorb cost pressures.

Amid the mixed environment, three solar equities stand out. First Solar posted a 24 % year‑over‑year sales rise to $1.04 billion and holds a 47.9 GW backlog, signaling strong demand for its thin‑film modules. Enphase Energy expanded its micro‑inverter shipments to 1.39 million units and introduced PowerMatch technology, enhancing battery integration for residential markets. Canadian Solar, while seeing a 64 % drop in module shipments, reported a 142 % surge in battery‑energy‑storage deliveries and is advancing a domestic HJT cell line slated for commercial operation in July 2026. Their earnings‑estimate upgrades and strategic milestones suggest they could capture upside as the broader market steadies.