Will solar stocks shine in the wake of Trump's One Big Beautiful Bill Act?

CHARLESTON, S.C., August 04, 2025 — Max Jackson & other wealth managers shed some light on the future of solar stocks now that the OBBBA has been enacted.

ARTICLE SUMMARY

1. Mixed recent performance: Solar stocks, as tracked by the Invesco Solar ETF (TAN), are up 12% YTD (2025) but remain down over 8% year-over-year and over 16% over the past five years—underperforming the broader S&P 500 significantly.
2. Policy shifts under Trump: The One Big Beautiful Bill Act reduces support for renewables but expands deregulation and incentives for other energy sources. TCW’s Eli Horton notes that short-term support for solar may continue, especially due to its speed-to-market and cost advantages.
3. Energy demand is booming: Ballast Rock’s Max Jackson sees long-term demand from AI, robotics, EVs, and reshoring as bullish for all energy—including solar. He highlights solar’s fast deployment and views community solar as a near-term opportunity despite federal funding cuts.
4. Bearish voices remain: Some, like Becky Lightman of Lightman Capital, warn that solar remains too dependent on subsidies, vulnerable to rate hikes, and exposed to geopolitical risks—making it a poor bet in the current political and economic climate.