U.S. Solar Stocks Plunge as Trump's "One Big, Beautiful Bill" Passes

Image: Cailianpress

On May 22, the U.S. House of Representatives narrowly passed former President Trump's "One Big, Beautiful Bill" by a 215-214 vote.

The legislation proposes sweeping tax cuts, slashes social spending, and raises federal debt. Crucially, its provisions to prematurely terminate clean energy tax credits directly undermine core pillars of the Biden-era Inflation Reduction Act (IRA).

The bill triggered a market bloodbath for renewable energy stocks on Thursday.

NextEra Energy, the largest U.S. power utility and renewable developer by market value, closed 6.4% lower. Enphase Energy, a solar technology and EV charging systems manufacturer, plummeted 19.6%.

The Invesco Solar ETF (exchange-traded fund), tracking major U.S. solar equities, saw its net asset value plunge up to 10%. Sunrun, the nation's largest rooftop solar company heavily reliant on 48E tax credit eligibility, collapsed nearly 37% at closing.

Analysts warn of extended weakness in green energy equities, with Société Générale's U.S. equity strategist Manish Kabra stating: "There's no clear catalyst or rationale to hold positions in U.S. solar companies now. The concerns are structural - we recognize the current administration's explicit priority to roll back green subsidies."

Source: Cailianpress