U.S. solar energy stocks suffered steep losses on Tuesday following the release of a Senate committee’s proposal to accelerate the phase-out of key solar and wind tax credits. The proposed changes are part of President Donald Trump’s expansive “One Big, Beautiful Bill Act,” an overhaul of tax and spending policy currently under review in Congress.
The draft legislation would reduce tax incentives for solar and wind energy to 60% of their current value by 2026 and eliminate them entirely by 2028. This marks a significant rollback compared to current laws, which extend support through 2032.
Market reaction was swift. Enphase Energy dropped 27.2%, First Solar sank 19.3%, Sunrun plummeted 43%, and SolarEdge Technologies tumbled 39.4%. The sell-off came amid ongoing challenges in the sector, including weakened U.S. residential demand, high interest rates, and regulatory reforms in California that have eroded returns on excess solar power.
Despite the market shock, analysts doubt the bill will pass in its current form by Trump’s July 4 deadline. Raymond James analyst Pavel Molchanov noted the proposal is “worse than the industry had hoped,” although still less severe than the House version passed last month. Citi analysts maintained a bearish outlook, calling the new draft “far more restrictive than the original bill.”
While the solar sector reels, the draft bill includes positive news for other clean energy sources, extending tax credits for hydro, nuclear, and geothermal energy through 2036. Nano Nuclear Energy rose 1.2% in response.
Swifteradio.com
