First Solar Stock, Peers Shine as Democrats Win Congress: What Midterm Results Mean for Solar Policy?

First Solar Inc. (NASDAQ:FSLR) shares, along with its peers, are trading higher Wednesday after Democrats won control of both the House and Senate in the midterm elections, raising expectations of stronger federal support for renewable energy.

• First Solar shares are powering higher. What’s behind FSLR gains?

Solar Stocks Rally Worldwide as Democrats Win Control of Congress

Global solar stocks advanced Wednesday following indications that that a Democratic Congress will mean stronger support for renewable energy policies and more opposition to President Donald Trump’s agenda. First Solar gained 11% during overnight trading, and Sunrun Inc. (NASDAQ:RUN) rose 8.7%. Enphase Energy Inc. (NASDAQ:ENPH) and SolarEdge Technologies Inc. (NASDAQ:SEDG) climbed as much as 12%. In South Korea, Hanwha Solutions rose as much as 10%, and HD Hyundai Energy Solutions and OCI Holdings rose more than 6%. The Invesco Solar ETF (NYSE:TAN) rose 3% in extended trading.

Democratic control of Congress should bolster confidence that federal support for clean energy will continue, potentially benefiting solar manufacturers such as First Solar, residential installer Sunrun, inverter maker Enphase and developer NextEra Energy Inc. (NYSE:NEE). The last Democratic-controlled Congress passed the Inflation Reduction Act in 2022, committing hundreds of billions of dollars to climate and energy-security measures, including expanded tax credits for renewable energy, nuclear power and electric vehicles.

The Trump Administration Has Rolled Back Federal Support for Wind and Solar

Since taking office in January 2025, Trump has taken a series of steps to unwind federal support for wind and solar, according to a Reuters timeline. On his first day, he paused new leasing and permitting of wind projects on federal lands and waters pending a review. His administration later ordered construction to stop on Equinor’s offshore wind project off New York. In July 2025, he signed the One Big Beautiful Bill Act, which ended subsidies for wind and solar projects years earlier than planned.

Under the law, projects that begin construction after July 4, 2026, must be placed in service by the end of 2027 to qualify for the tax credits. An executive order the same month directed Treasury to strictly enforce the end of the credits and Interior to eliminate preferential treatment for wind and solar. Interior added layers of review for projects on federal lands and canceled approval of the Lava Ridge wind project in Idaho, Treasury issued rules making it harder to claim the credits, Commerce opened an investigation into imported wind turbine components and the administration moved to revoke approvals for the US Wind offshore project off Maryland.

The administration has said wind and solar are unreliable, expensive and dependent on foreign-controlled supply chains, and says it favors dispatchable sources including nuclear and fossil fuels. Trump remains president and can veto legislation, so any bill to restore the credits would need his signature or a two-thirds vote in both chambers to override a veto.

First Solar Shares Gain

FSLR Price Action: At the time of publication, First Solar shares are trading 8.40% higher at $201.52, according to data from Benzinga Pro.

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