Shares of major US solar companies tumbled sharply on Thursday after the House of Representatives passed President Donald Trump’s tax and spending bill, a sweeping measure that aims to dismantle key pillars of the Biden-era Inflation Reduction Act and cut billions in federal support for renewable energy.
The proposed legislation, which now moves to the Senate, would eliminate or drastically shorten several tax credits and subsidies that have underpinned the growth of the solar and wind industries over the past two years.
Analysts and climate policy experts warned the changes could hobble clean energy investment and increase costs for American households.
From Sunrun to Complete Solaria: stocks slide across solar sector
Leading the premarket losses, Sunrun shares fell as much as 33%, with Complete Solaria plunging 22%.
Other notable names in the sector also slid: Enphase Energy dropped nearly 16%, Maxeon Solar by 10%, and SolarEdge Technologies shed around 15%.
Shares of global solar players were also part of the bleed, with JinkoSolar down 2.3%, First Solar down 6.5%, and Canadian Solar falling 10%.
The sudden downturn reflects investor alarm over the potential rollback of incentives that have fueled demand for solar installations, home energy efficiency upgrades, and domestic manufacturing.
In particular, the bill would repeal the 30% federal tax credit for rooftop solar systems, a mainstay of residential adoption.
“The bill pulls the rug out from facilities and households that were counting on these credits,” said Robbie Orvis, senior director at Energy Innovation, a climate policy think tank. “It’s worse than what many envisioned.”
Subsidy rollbacks jolt industry; sector to lobby Senate
While a phase-out of wind and solar credits had been expected eventually, the House bill fast-tracks the timeline significantly.
Under the new proposal, clean energy projects must begin construction within 60 days of the bill becoming law and be completed by the end of 2028 to qualify for tax benefits.
These revised deadlines and funding cuts come as US power demand rises and energy costs remain volatile.
Raymond James analyst Pavel Molchanov noted that the sector will now shift lobbying efforts to the Senate, where the industry hopes to reverse or soften some of the House changes.
“While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House,” Molchanov said.
Clean energy investments in limbo
The stakes are high.
Since the Inflation Reduction Act was signed into law in 2022, more than $320 billion has been invested in clean energy projects, with another $522 billion planned, much of it in Republican-held states.
These projects now face deep uncertainty.
“If these changes are passed, over ten years we estimate the US GDP could fall by more than $1 trillion,” Orvis added.
The Trump administration’s broader policy approach has also targeted energy efficiency programs, climate-focused loans, and green grants.
Combined, experts warn, the rollback could raise household energy costs and undermine US competitiveness in the global clean tech race.
The Senate’s response in the coming weeks will determine whether these measures stand or are reworked.
For now, the solar industry faces its most serious political challenge in years.
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