Solar stocks moved sharply lower after a US Senate panel has proposed phasing out solar and wind energy tax credits by 2028.
Solar installation company Sunrun Inc (NASDAQ:RUN) led the decline in solar stocks, tanking 42% late morning on Tuesday.
SolarEdge Technologies (NASDAQ:SEDG) fell 37%, Enphase Energy Inc (NASDAQ:ENPH, ETR:E0P) shares fell more than 25%, and First Solar Inc (NASDAQ:FSLR, ETR:F3A) was down 18%.
The proposal is an amendment of president Donald Trump’s sweeping tax-cut and spending bill, called the “One Big, Beautiful Bill Act,” which narrowly passed the House last month.
The draft legislation suggests slashing the tax credits to 60% of their current level in 2026 and ending them by 2028, accelerating the phasing out of these incentives set to start in 2032 under the current legislation.
The proposal comes on top of already challenging market conditions for solar operators, including high costs, technological limitations, and supply chain disruptions.