A new tax bill passed by House Republicans has sent shockwaves through the rooftop solar industry, with major stocks plummeting in response. The legislation terminates key clean energy credits that have driven growth and expansion in the sector.
According to analysts, the bill is “disastrous” for companies like Sunrun, which relies on lease arrangements to install equipment on customers’ rooftops. With 70% of the industry now using this model, the termination of tax credits will significantly impact revenue.
Enphase and SolarEdge also saw significant declines, with sales of their inverters expected to suffer from lower demand for rooftop solar installations. The bill’s impact on utility-scale solar projects in the US is also a concern, as investment and electricity production credits are set to expire.
However, First Solar fared better, as the manufacturing tax credit remained largely intact. The company is the largest producer of solar panels in the US and has a significant domestic manufacturing presence.
The bill still needs to pass the Senate before it becomes law, and analysts predict that changes will be made to the legislation. Despite this, the initial reaction from the industry suggests that the termination of clean energy credits will have significant consequences for companies in the sector.
Source: https://www.cnbc.com/2025/05/22/solar-stocks-plunge-as-republican-tax-bill-worse-than-feared-for-clean-energy.html