Potential IRS Guidance May Bolster Array Technologies’ Growth Trajectory by 2026

Array Technologies (ARRY) may benefit from upcoming IRS guidance expected in late 2025 or early 2026, which could extend tax credit eligibility to solar tracking systems used in large-scale energy installations. The proposed clarification aims to align federal incentives with the performance advantages of single-axis tracking technology, potentially unlocking additional investment in U.S. solar infrastructure. The guidance, if finalized, would allow qualifying projects to claim up to 30% of system costs under the Investment Tax Credit (ITC), including the mechanical and structural components of tracking systems. For Array Technologies, which supplies over 60% of the U.S. market share in solar trackers, this could translate to an estimated $120 million in incremental revenue by 2027 across existing and new contracts. The company currently reports annual revenue of approximately $900 million, with over 70% derived from North American utility projects. Market participants are monitoring the Treasury Department’s consultation process, with analysts noting that revised ITC rules could reduce levelized cost of energy (LCOE) by 5% to 8% for projects using advanced tracking systems. This improvement in project economics would directly strengthen ARRY’s competitive positioning against alternative mounting solutions and could drive higher utilization of its modular, high-efficiency tracker designs. Stakeholders including developers, EPC firms, and renewable project financiers are preparing for potential shifts in project planning, with several major solar developers indicating they may accelerate build-out timelines if favorable IRS treatment is confirmed. The outcome could also influence capital allocation decisions across the broader energy infrastructure sector, particularly in states with aggressive clean energy mandates such as California, Texas, and New York.