Citi still negative on residential solar after latest version of ‘OBB’

The latest version of “The One Big Beautiful Bill” Act released Friday night is “somewhat contrary to the ‘worst is behind us’ expectation,” says Citi analyst Vikram Bagri, who notes that the bill provides “a lifeline to residential solar” by allowing leasing, but adds that the timeline for ITC, PTC, and FEOC was accelerated while a new tax was introduced on violation of material assistance. A more restrictive FEOC and escalating 50B penalties are positive for the analyst’s “top pick” First Solar (FSLR), but the firm remains negative on residential solar and believes there is “room for downside” in Sunrun (RUN), Enphase Energy (ENPH) and SolarEdge (SEDG), the analyst tells investors.