Solar Stocks Crater as Trump’s New Tax Bill Advances

U.S. solar energy stocks fell sharply on Thursday after the House of Representatives advanced President Donald Trump’s new tax and spending bill. This is because the bill threatens to cut many green energy subsidies that have helped the renewable sector grow in recent years. As a result, shares of Sunrun (RUN), SolarEdge Technologies (SEDG), Enphase Energy (ENPH), Maxeon Solar (MAXN), First Solar (FSLR), and Canadian Solar (CSIQ) all declined as investors reacted to the proposed changes.

The bill, which has been referred to by Trump as “one big beautiful bill,” would undo several programs created under the Inflation Reduction Act. These include grants to reduce air pollution and greenhouse gas emissions, as well as funding to support electric heavy-duty vehicles. One of the most significant changes would eliminate the 30% federal tax credit for people who install rooftop solar panels, which would hurt demand.

While the industry was already planning for a gradual phase-out of solar and wind tax credits, this bill would speed up the timeline. Indeed, according to four-star Raymond James analyst Pavel Molchanov, projects would need to start within 60 days of the bill becoming law and be finished by the end of 2028 to qualify for credits. Unsurprisingly, as the bill moves to the Senate, clean energy companies are expected to lobby hard to reverse these changes.

Which Solar Stock Is the Better Buy

Turning to Wall Street, out of the six stocks mentioned above, analysts think that RUN stock has the most room to rally. In fact, RUN’s average price target of $11.74 per share implies more than 80% upside potential. On the other hand, analysts expect the least from SEDG stock, as its average price target of $14.57 equates to a loss of 5.8%.

See more RUN analyst ratings