Yahoo Finance·2025-10-05 23:00Core Insights - The U.S. community solar sector is experiencing a significant decline, with installations dropping 36% year-over-year in the first half of the year, attributed to changes in legislation and tax incentives [3][5][6] - Despite the bearish outlook for community solar, certain solar stocks are performing well, driven by strong demand and favorable provisions in recent legislation [5][7][9] Community Solar Installations - Wood Mackenzie forecasts a 12% annual contraction in community solar installations through 2030, with total installations expected to reach 9.1 GW by mid-2025 and exceed 16 GW by 2030 [3][4] - New York is projected to account for nearly 30% of the U.S. decline in community solar installations in 2025, with Massachusetts, Maryland, and New Jersey facing similar challenges [1][2] Legislative Impact - The "One Big Beautiful Bill Act" (OBBBA) has negatively impacted tax incentives for clean energy projects, leading to a more pessimistic outlook for community solar [3][5] - OBBBA includes provisions that favor solar manufacturing in the U.S., maintaining tax credits for solar projects while phasing them out for wind and solar projects after December 31, 2027 [6] Company Performance - First Solar's stock has increased by 33.6% year-to-date, with UBS raising its price target due to expected benefits from OBBBA credits [7] - SolarEdge has achieved a year-to-date return of 172.4%, with a strategy focused on onshoring manufacturing to the U.S. to benefit from advanced manufacturing credits [8] - Sunrun has seen a 107.8% increase in stock value year-to-date, driven by cost efficiencies and a record storage attachment rate [9]