The Biden administration’s Solar Futures Study (SFS) could set a foundation for legislations that facilitate a ramp-up in solar energy generation, which would benefit solar power companies’ toplines, says Fitch Ratings. However, rising costs, trade wars and resiliency issues are interim hurdles for solar producers to meet growing demand, added Fitch in a report. The SFS stated solar energy has the potential to power 40pc of the nation’s electricity needs by 2035. Renewables represented approximately 20pc of US electricity generation in 2020, according to the US Energy Information Administration, but only 2.3pc of this electricity was from solar. The remaining consisted of wind at 8.4pc, hydroelectric at 7.3pc, biomass at 1.4pc and geothermal at 0.4pc. An increase to 40pc would require the US to increase the installed solar capacity to approximately 759 GW from 109 GW at present. Companies such as NextEra Energy Partners (BB+/Stable), AES Corporation (BBB-/Stable) and Xcel Energy (BBB+/Stable) have planned to increase solar generation aggressively to reposition their portfolio and are poised to benefit from exponential solar energy demand, said Fitch.