Which Solar Stocks Are Rising And Falling As China Considers Export Ban?

• China produces roughly 80% of the world's solar panels and is considering limiting exports of advanced solar technology to the U.S., according to Reuters
• The solar energy industry group of 24 stocks is collectively down 11.4% in 2026, with First Solar (the largest U.S. solar company) falling 23% year-to-date
• U.S. tech companies are placing renewed focus on solar energy for space-based data centers, with Tesla planning to produce 100 gigawatts of solar power by end of 2028

Solar Stocks React to China Export Ban Speculation

Solar energy stocks showed mixed movement Wednesday following reports that China is considering export controls on advanced solar technology to the U.S.

Key Market Movements

Winners: Nextpower, First Solar, and Enphase rose in premarket trading, potentially benefiting from reduced Chinese competition. Year-to-date, Nextpower and SolarEdge have gained 32% and 49% respectively.

Losers: Canadian Solar, SolarEdge Technologies, and First Solar (down 23% in 2026) declined. The broader IBD solar energy industry group, comprising 24 stocks, is down 11.4% year-to-date.

Export Control Details

Chinese officials reportedly discussed limiting exports of cutting-edge solar equipment to the U.S., according to Reuters. China dominates global solar production, manufacturing approximately 80% of the world's solar panels. Major Chinese producers include Longi, JA Solar, Trina Solar, Daqo New Energy, and Jinko Solar.

The U.S. Commerce Department has long accused Chinese firms of dumping cheap solar panels in global markets, undercutting local competitors through generous government subsidies that enable below-cost pricing.

Industry Developments

The tech sector is increasingly focused on solar energy for ambitious space-based data center projects. Nvidia launched a space-focused edge computing module in March, while Elon Musk's companies announced plans for solar-powered orbital data centers in February. Tesla aims to produce 100 gigawatts of solar power by end-2028 as a vertically integrated manufacturer.

Additional Impact: Enphase stock declined 15% this month following multiple class-action lawsuits concerning financial reporting, though remains flat year-to-date.