US-listed solar energy stocks tumbled on Thursday after the House of Representatives passed a sweeping budget and tax bill that proposes to eliminate key clean energy incentives, triggering fears of a sharp slowdown in industry investment.
The legislation, backed by Republicans and branded by former President Donald Trump as the “One Big, Beautiful Bill,” calls for the immediate repeal of the 30% federal tax credit for residential solar installations.
The bill also accelerates the phaseout of investment and production tax credits that have underpinned the growth of utility-scale solar projects.
The sell-off in solar stocks was swift and deep. Sunrun Inc (NASDAQ:RUN), one of the largest residential solar providers in the US, saw its shares plunge between 33% and 35%, making it one of the hardest-hit names.
Enphase Energy Inc (NASDAQ:ENPH, ETR:E0P), a leading supplier of inverters, fell between 15% and 18%, while SolarEdge Technologies (NASDAQ: SEDG) dropped as much as 18% amid investor concerns over declining rooftop solar demand.
Shares of utility-scale solar players were also under pressure. Array Technologies (NASDAQ:ARRY), which provides tracking systems for large-scale solar farms, declined 14%, and Nextracker (NASDAQ:NXT) slipped 5%.
Module makers with broader international exposure, such as JinkoSolar Holding Co., Ltd. (NYSE:JKS), fared slightly better but were still down between 2.3% and 4.7%. Canadian Solar Inc. (NASDAQ:CSIQ) dropped as much as 10%.
First Solar Inc (NASDAQ:FSLR, ETR:F3A), which has a substantial US manufacturing presence, was among the least affected, falling just 1%, as the bill preserves certain manufacturing tax credits that benefit domestic producers.
The legislative move, if signed into law, could reduce solar and storage investments by as much as $220 billion by 2030, analysts warned, citing potential losses in project financing and deployment momentum.
Jefferies analysts described the GOP bill as a “worse than feared” outcome for the clean energy sector, indicating that it strikes hard at the Inflation Reduction Act, which had provided long-term certainty for renewable energy investments.
While the bill now heads to the Senate — where changes are possible — the immediate market reaction underscored deep investor unease about the future of solar policy in the US.