Solar Stocks Surge in 2025: Key Players First Solar (FSLR) & Vivant Solar (VSLR) Price Analysis

Despite the challenges posed by the global pandemic, solar stocks have demonstrated remarkable resilience, even in regions like California where construction activities were severely restricted. The state's recent legislation mandating solar energy integration in all new buildings has provided a solid foundation for sector growth. Additionally, tariffs on solar imports from China have strengthened domestic players such as Arizona-based First Solar, Inc. (FSLR) and Utah's Vivant Solar, Inc. (VSLR), boosting their sales and installation rates.

Historically, high oil prices supported solar sector momentum, but the unprecedented drop of crude oil prices into negative territory in April 2020 did not dampen investor enthusiasm. This is largely due to increasing political and social pressure from millennial and Gen-Z environmental advocates pushing to phase out fossil fuels. This movement has gained rapid traction among moderate and left-leaning voters, reinforcing the sector's long-term growth prospects.

Favorable financing conditions, marked by declining yields, have made solar energy more accessible to both major installers and individual consumers, reducing the cost barrier for clean energy adoption. However, federal subsidies are winding down, with the 26% tax credit for solar installations set to phase out by 2022—though potential policy changes following upcoming elections could reverse this trend.

First Solar debuted at $24.50 in November 2006, soaring to a peak of $317 by mid-2008 before experiencing sharp declines alongside global markets. The stock found support around $85 but dipped to historic lows in the lower teens by 2012. Attempts to break resistance in 2014 and 2016 were unsuccessful, and the stock declined to a four-year low in April 2017. After a challenging downtrend culminating in a three-year low of $28.47 in March 2020, First Solar has rebounded and is approaching key resistance levels that could signal a buying opportunity if accompanied by strong volume.

A long-term ascending channel since 2012 projects a target price near $90, though alignment with previous resistance levels suggests it may take several years before First Solar reaches triple-digit valuations again. Nonetheless, this presents significant upside potential from current prices.

Vivant Solar, a smaller-cap solar installer positioned to benefit from California's solar mandates, reached a peak of $18.71 in October 2014 before entering a steep decline to $2.16 in 2016. Since then, the stock has experienced volatile swings but shows an underlying upward trend, supported by the 200-day exponential moving average rising from $3.50 in 2017 to $7.50 in 2024. After hitting a four-year high early in 2020 and a subsequent two-year low, Vivant Solar has recovered approximately 70% of its losses. The on-balance volume indicator remains strong, suggesting further price gains and a potential test of previous highs.

The Takeaway

Solar stocks are poised for growth in 2024 and beyond, buoyed by regulatory support, environmental momentum, and favorable financing conditions. Investors seeking exposure to clean energy should watch key players like First Solar and Vivant Solar as they navigate this promising landscape.

Disclosure: The author did not hold positions in any securities mentioned at the time of writing.

Have a news tip for our team? Contact us at tips@investopedia.com.

Explore useful articles in Markets News as of 06-07-2020. The article titled " Solar Stocks Surge in 2025: Key Players First Solar (FSLR) & Vivant Solar (VSLR) Price Analysis " offers in-depth analysis and practical advice in the Markets News field. Each article is carefully crafted by experts to provide maximum value to readers.

The " Solar Stocks Surge in 2025: Key Players First Solar (FSLR) & Vivant Solar (VSLR) Price Analysis " article expands your knowledge in Markets News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.