1、ab14 April 2025Global ResearchNorth America Alternative EnergyNavigating Tariffs&Tax PolicyUncertainty on top of uncertaintyThe Trump administrations 02-Apr-2025 reciprocal tariff announcement&subsequent 90 day pause has added yet another layer of uncertainty to the already out-of-favor Clean Energy

2、 sector,in our view.Although we view the sector as well versed in navigating tariff risks,in general,we expect continued fund outflows until Federal renewable tax policy is clarified.The outcome of budget reconciliation(likely not until 2H25)is set to be the next major catalyst,setting a policy floo

3、r for the sector and driving capital allocation back to Clean Energy stocks,in our view.With this backdrop,we continue to prefer utility-scale names with strong U.S.domestic manufacturing presence(FSLR,NXT,ARRY,SHLS).We also highlight the renewable IPPs(CWEN,BEP,ORA)as offering highly contracted ear

4、nings that are relatively well insulated from medium-term tariff&policy risk.Solar industry well prepared In our view,the U.S.solar industry is relatively well positioned to contend with new tariffs.Existing safe harbored supply and a reported 50GW of U.S.solar module stockpile could alleviate the w

5、orst of the tariff headwind in 2025.In addition,many supply contracts already embed change in law provisions.We generally expect tariff costs to be borne by all supply chain participants to support developer economics(end-demand),although this could lead to project delays as PPA contracts might need

6、 to be renegotiated.FSLR remains our Top PickFSLR is a relative beneficiary in a protectionist environment due to their leading position as a U.S.vertically integrated solar module manufacturer.However,FSLRs international footprint which exports to the U.S.is likely to face tariff headwinds and we c