Shares of several solar stocks slid during Monday's trading session as the sector broadly declined amid renewed political risk to clean-energy incentives.
What To Know: The drop follows a Bloomberg report detailing a Republican-led effort to accelerate the sunset of key tax credits established under the Inflation Reduction Act.
Representative Ralph Norman of South Carolina, one of four ultraconservative lawmakers involved in negotiations, reportedly told Bloomberg that House leadership had agreed to proposals to cut clean-energy credits earlier than previously planned. While the original legislation phased out many incentives between 2029 and 2032, Norman did not specify a revised timeline.
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The policy uncertainty hit solar stocks hard, with Sunrun Inc (NASDAQ:RUN) falling 8.4% to $11.22 and First Solar Inc (NASDAQ:FSLR) shares down 8.75% to $162.80. Enphase Energy Inc (NASDAQ:ENPH) shares were also down about 3.95%, trading at $48.40 at publication time.
Sunrun is a leading U.S. provider of residential solar energy systems, offering solar panel installation, battery storage and energy management services.
Enphase Energy’s products enable efficient solar energy conversion, storage and management, helping users optimize energy usage and grid independence. First Solar designs and manufactures solar photovoltaic panels, modules and systems for use in utility-scale development projects.
Clean energy stocks got a boost last week after House Republicans offered a tax proposal for renewable energy incentives that was largely better than most feared.
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