By Vallari Srivastava
(Reuters) -Shares of U.S. solar companies fell sharply in premarket trade on Thursday after the House of Representatives advanced President Donald Trump’s sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector.
Sunrun led the market rout, with shares falling as much as 33%, Complete Solaria fell nearly 22% while Enphase Energy, Maxeon Solar and SolarEdge Technologies dipped between 10% and 15.6%.
Shares of JinkoSolar fell 2.3%, while First Solar and Canadian Solar dropped 6.5% and 10%, respectively.
Trump’s budget package – which he calls “one big beautiful bill” – would eliminate funding established under the Biden Administration’s Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles.
The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry.
While the industry anticipated the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters.
As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill’s enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits.
Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA.
“While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House,” Molchanov added.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid)
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