Solar stocks could race even higher.

All thanks to interest rate cuts.

Over the last days, the Federal Reserve cut interest rates by a half-point in a move that should bring some financial relief to households and businesses, including solar.

With the benchmark rate now between 4.75% and 5%, the central bank is attempting to ease pressure on the economy and help keep the job market from slowing down even more.

In addition, as noted by BankRate.com, “The Fed has two remaining meetings this year: in November and December. Taken together with Powell’s comments, the projections assume a quarter-point cut at both meetings, rather than a larger half-point cut at one of those gatherings. In 2025, Fed officials expect another full percentage point of cuts.”

All of which should positively impact solar stocks, such as:

First Solar (FSLR)

Since finding support at $202.15, First Solar (FSLR) raced to a recent high of $261. From here, we’d like to see it initially retest $280. Fueling further upside, analysts at Truist just initiated a buy rating on FSLR with a $300 price target, noting the company’s “"differentiated technology, continued investment in R&D, and sizable contracted backlog further securing [its] competitive moat both for current and future module technology iterations,” as quoted by Seeking Alpha.