Core Insights - The One Big Beautiful Bill (OBBB) Act has been enacted, introducing new rules that may weaken the U.S. clean energy sector, particularly solar power, by eliminating several incentives [1][2] - Despite the negative impact on solar companies, the Senate version of the bill has softened some provisions, suggesting that the industry may not face as dire a situation as previously feared [2][3] Summary of Key Provisions - The OBBB Act cancels the 30% tax credit for residential solar systems, which will expire on December 31 of this year, significantly ahead of schedule [4] - Utility and commercial projects will see a phase-out of the 30% tax credit after 2027, with projects started after 2029 losing the credit entirely, although projects initiated within 12 months of the bill's passage are exempt [4] - The act has removed an excise tax on imported solar modules and eased timelines for commercial projects, which may provide some relief to the solar sector [3] Company-Specific Insights - **NextEra Energy**: - One of the largest diversified clean energy companies in the U.S., with 33,000 megawatts of operating energy in 2023 [5] - The stock trades at a P/E ratio of 27.5, slightly below its 10-year average, with projected EPS growth of 26% in 2024 and 7.2% in 2025 [6][7] - **First Solar**: - Focuses on domestic manufacturing of solar modules, which may provide a competitive edge under the new regulations [9] - The Royal Bank of Canada has increased its price target for First Solar from $188 to $200, with an average analyst price target of $228.69, indicating significant upside potential [10] - **Nextracker**: - Sold nearly $3 billion worth of solar trackers in the last year, primarily used in large utility-scale projects, which may shield it from the impacts of tax credit phase-outs [11] - The stock trades at a P/E ratio of 19, with a net profit margin of 17.21% and a quarterly revenue increase of 15% year-over-year [12]