First Solar remains key beneficiary of new content guidance, says Roth MKM

Roth MKM analyst Philip Shen says the Department of Treasury earlier today released updated domestic content guidance, including the imminent removal of the 201 bifacial exemption. The bottom line is that Roth continues to expect U.S. made cells to be practically required to secure the 10% domestic content investment tax credit adder, “likely to the dismay of much of the industry,” the analyst tells investors in a research note. Roth believes First Solar (FSLR) remains the key beneficiary in its coverage universe, adding the tracker vendors – Nextracker (NXT), Array Technologies (ARRY) and FTC Solar (FTCI) -likely can’t benefit as easily. The firm’s initial industry work and checks suggest trackers can’t meet the domestic content ITC adder requirements without having a U.S. made cell. It thinks Sunrun (RUN) and Sunnova Energy (NOVA) “appear to be winners as well with storage.”