First Solar, Enphase Energy and Canadian Solar Lead Solar Power Outlook

Solar power demand is still expanding, and on May 28, 2026, Zacks Equity Research discussed First Solar, Enphase Energy and Canadian Solar as the U.S. market continued to draw support from rising electricity use, AI-driven data center growth and corporate clean-energy goals. For investors, the setup is a mix of growth and friction: demand is rising, but policy and cost pressures are narrowing the path for project economics.

May 28, 2026 solar names

Zacks Equity Research put First Solar, Enphase Energy and Canadian Solar in focus on May 28, 2026, framing them as companies solar investors may want to monitor. The call landed as utilities and businesses across the United States accelerated adoption of solar energy, especially systems paired with battery storage, which help maintain power reliability during grid disruptions and periods of peak demand.

Rising electricity prices are making solar increasingly attractive, while the rapid expansion of artificial intelligence and cloud computing has significantly increased electricity consumption. Major technology companies and hyperscalers are investing aggressively in utility-scale solar and energy-storage projects, giving developers more large-scale demand even as residential economics soften.

SEIA sees 769 GWdc

279 GWdc at year-end 2025 could rise to 769 GWdc by 2036, according to a March 2026 Solar Energy Industries Association projection that implies average annual capacity additions exceeding 44 GWdc. That forecast reflects a stronger near-term utility-scale project pipeline and continued growth in energy demand expectations, pointing to a market that is still adding capacity fast even after policy changes.

8% of U.S. electricity generation is projected to come from solar in 2026, rising to 9% in 2027, according to the U.S. Energy Information Administration. Solar remains the nation's dominant form of new generating capacity, so even modest share gains translate into more projects, more equipment orders and more competition for the companies tied to the buildout.

Policy pressure after tax cuts

One Big Beautiful Bill Act changed the backdrop by significantly reducing the eligibility window for key clean-energy tax incentives. Tighter tax-credit timelines are tempering growth, supply-chain pressures are increasing project risks and weaker residential solar economics are slowing parts of the market, including in California under the Net Billing Tariff.

For companies such as First Solar, Enphase Energy and Canadian Solar, the result is a market that is still expanding but less forgiving on timing, costs and project execution. Investors tracking the sector now have three moving pieces to watch at once: utility-scale demand, tax-credit deadlines and the pressure on residential returns.