Guggenheim says Senate draft tax language ‘quite negative’ for residential solar

Guggenheim analyzed the details of the Senate Finance Committee’s draft of tax language for the proposed Republican megabill and tells investors that the implications are “mixed” for utility-scale renewable energy, but “quite negative for residential solar.” Relative to the House bill, the firm says that Senate Finance’s proposals are neutral to slightly negative for utility-scale solar, wind and energy storage, with some useful clarifications in some areas but tighter timelines for tax credit wind-downs as well. However, the language for residential solar power systems “appears to be unchanged from the earlier (very negative) House bill,” which is bad news for residential solar stocks given hopes earlier this week that the House bill would see some changes, the analyst added. Publicly traded companies in the solar energy space include Array Technologies (ARRY), Canadian Solar (CSIQ), Complete Solaria (SPWR), Emeren (SOL), Enphase Energy (ENPH), FTC Solar (FTCI), First Solar (FSLR), JinkoSolar (JKS), Maxeon Solar (MAXN), Shoals Technologies (SHLS), SolarEdge (SEDG) and Sunrun (RUN).