Sunrun, First Solar Plunge—Solar Stocks Hit Hard By Trump Tax Bill: Latest

Solar stocks fell sharply on Tuesday after the U.S. Senate Finance Committee unveiled its version of President Donald Trump's tax bill which slashed renewable energy incentives.

The Details: The Senate's draft proposal calls for a complete phase-out of tax credits for both solar and wind energy by 2028, accelerating the rollback of incentives originally established under the Inflation Reduction Act of 2022. 

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Under the new plan, credits for solar and wind projects would be reduced to 60% of their original value by 2026, drop to 20% in 2027, and be eliminated entirely for projects placed in service after 2028, according to Reuters. 

The bill also proposes eliminating residential solar tax credits and consumer incentives for energy efficiency upgrades within 180 days of enactment, further tightening the landscape for renewable energy investments.

Solar Stocks React 

Solar energy stocks responded swiftly to the Senate's proposal. In premarket trading Tuesday, shares of Enphase Energy, Inc. ENPH plunged nearly 20%, Sunrun, Inc. RUN fell more than 35%, SolarEdge Technologies, Inc. SEDG dropped 30% and First Solar, Inc. FSLR declined by about 17%. 

Nuclear Stocks React

In contrast, the Senate's proposed bill extends tax incentives for nuclear energy until 2036, reflecting a shift in federal support toward these technologies. Shares of nuclear companies like Oklo, Inc. OKLO, NuScale Power Corp. SMR and Nano Nuclear Energy Inc. NNE moved higher in Tuesday's premarket trading. 

Political Outlook 

Senate Republicans are pushing to pass the legislation before the July 4 holiday, but the timeline remains uncertain due to procedural hurdles and possible amendments. GOP leaders may need to negotiate further which could push the bill's final passage into late July.

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