Shares of residential solar installer Sunrun could rise about 45% from here if an ambitious spending package is passed, according to Barclays. Solar stocks got a boost last week after Senate Majority Leader Chuck Schumer, the Democratic senator, and the senator were announced. Reach Joe Manchin, DW.V. Agreement on the Inflation Reduction Act of 2022. The legislation includes $369 billion in provisions for climate and clean energy. Analyst Kristen Chu kicked off Sunrun’s coverage with an overweight rating, saying the solar company would get the most benefit from the bill. “We believe that the names of residential installers are the most directly affected by ITC extension, if passed, and we prefer RUN and NOVA as ways to invest in the residential solar space due to their stable and steady cash flow, growth potential, and position to raise interest rates charged to clients against an ever-increasing interest rate environment.” Zhou wrote in a note Thursday. Sunrun’s target is $46, which is about 45% higher than Thursday’s closing price of $31.82. Sunrun’s share price rose 4% in Friday’s pre-market trading. The appropriations and subsidies in the bill indicate a “continuous investment path” over the next decade that will be a boon for solar companies. In recent months, the renewable energy industry has grappled with supply chain challenges and rising commodity costs that have held back companies like Sunrun. “While improvements in battery technology are still needed to counter the intermittency issues inherent in renewables, we believe that the proposed potential tax credit for storage should trigger a sustained long growth cycle, which would lower costs and increase dependence,” Chu wrote. Other heavyweight names include Sunnova Energy and Array Technologies. —CNBC’s Michael Bloom contributed to this report.