Solar stocks ranked by Seeking Alpha Quant rating as sector faces Senate setback

Solar companies faced a setback this week, after the U.S. Senate proposed to fully phase out federal tax credits for solar and wind energy projects by 2028.

U.S. Senate Finance Committee Chairman Mike Crapo (R-ID) on Monday released a draft text that made several changes to President Donald Trump’s “One Big Beautiful Bill” passed in the House last month.

The Senate draft bill seeks to scale back solar and wind tax credits and incentives introduced under the Biden administration’s 2022 Inflation Reduction Act. Currently, those credits and incentives are set to be phased out in 2032. However, the Senate proposes reducing the value of the credits to 60% by 2026, and removing them entirely by 2028.

U.S.-listed shares of solar companies took it on the chin after the draft bill was released on Monday. Uncertainty over tariffs and fluctuating trade policies along with the potential removal of the tax credits pose as significant headwinds to the U.S. solar industry, which has largely been doing well.

“As drafted by the Senate Finance Committee, this proposal would pull the plug on homegrown solar energy and decimate the American manufacturing renaissance,” Abigail Ross Hopper, CEO of the Solar Energy Industries Association (SEIA), said on Monday. Founded in 1974, SEIA is the national trade association for solar and solar plus storage companies with 1,200 members.

“This bill makes it harder to do business in America for U.S. manufacturers and small businesses and will undoubtedly lead us to an energy-strained economy with higher electric bills over the next five years,” Hopper added.

With the sector facing uncertainty, Seeking Alpha put together the following list of some notable solar stocks ranked by their Quant rating:

1. Nextracker (NASDAQ:NXT); market cap $8.43B, Quant rating Buy 3.97.
2. Array Technologies (NASDAQ:ARRY); market cap $1.13B, Quant rating Buy 3.58.
3. FTC Solar (NASDAQ:FTCI); market cap $55.74M, Quant rating Hold 3.30.
4. JinkoSolar (NYSE:JKS); market cap $1.02B, Quant rating Hold 3.26.
5. NextEra Energy (NYSE:NEE); market cap $147.25B, Quant rating Hold 3.24.
6. AES (NYSE:AES); market cap $7.41B, Quant rating Hold 3.20.
7. Maxeon Solar Technologies (NASDAQ:MAXN); market cap $48.49M, Quant rating Hold 3.13.
8. Canadian Solar (NASDAQ:CSIQ); market cap $670.29M, Quant rating Hold 2.94.
9. Shoals Technologies (NASDAQ:SHLS); market cap $832.53M, Quant rating Hold 2.83.
10. First Solar (NASDAQ:FSLR); market cap $15.55B, Quant rating Hold 2.81.
11. Sunrun (NASDAQ:RUN); market cap $1.42B, Quant rating Hold 2.80.
12. Daqo New Energy (NYSE:DQ); market cap $931.42M, Quant rating Hold 2.76.
13. SolarEdge Technologies (NASDAQ:SEDG); market cap $975.41M, Quant rating Hold 2.73.
14. Enphase Energy (NASDAQ:ENPH); market cap $4.70B, Quant rating Strong Sell 1.42.
15. Fluence Energy (NASDAQ:FLNC); market cap $1.06B, Quant rating Strong Sell 1.29.

Seeking Alpha’s Quant system consistently outperforms the S&P 500 (SP500), driven by powerful computer processing and SA’s special ‘Quantamental’ analysis. It awards grades to stocks based on collective value, growth, profitability, earnings per share revisions, and price momentum metrics.

Here are some exchange-traded funds of interest linked to solar and green energy: (NYSEARCA:TAN), (NYSEARCA:FAN), (NASDAQ:ICLN), (NASDAQ:QCLN), (NYSEARCA:PBW), (NYSEARCA:PBD), (NYSEARCA:ACES), (NYSEARCA:CNRG), (NYSEARCA:ERTH), and (NYSEARCA:SMOG).