Swing To Trade
  • Stock
  • Politics
  • Business
  • Sports
Stock

What’s next for US solar stocks after Senate nods on cuts to incentives?

by admin June 17, 2025
June 17, 2025

Solar stocks are taking a material hit this morning after the US Senate approved cuts to renewable energy incentives the Trump administration proposed in its controversial spending bill last month.

On Tuesday, the upper chamber decided in favour of keeping incentives for hydropower, nuclear, and geothermal energy in place – but included a provision in the said bill that will fully eliminate ones for solar and wind power by 2028.

Enphase, Sunrun, Solaredge, and First Solar – all are down between 18% and 43% at the time of writing.

What removal of tax credits mean for US solar stocks?

Note that tax incentives for solar/wind power under the previous government’s Inflation Reduction Act (IRA) were originally set to remain in place through 2032.  

An early sunset is meaningful for solar stocks as it wipes out critical financial underpinnings of pending and planned projects, reduces business pipelines, and forces layoffs or cancellations, especially in the residential segment.

Residential solar providers like Enphase or Sunrun face a concentrated loss of demand following the Senate’s nod on cuts to renewable energy incentives on Tuesday.

Without nationwide tax credits, rooftop system cost could rise by some 30%, shrinking uptake and ultimately profits.

Smaller installers are particularly vulnerable as contracting margins could even push them into bankruptcy in the back half of 2025.

How IRA helped solar stocks outperform in recent years?

Biden’s IRA offered bonus add-ons for domestic sourcing and wage/apprenticeships to solar firms on top of a standard 30% credit.

These incentives are widely credited with quadrupling US solar manufacturing capacity, adding as much as 31GW last year, and attracting more than $20 billion in investments in year one alone.

The Inflation Reduction Act has helped rooftop solar savings reach millions of US households.

In 2023, 3.4 million families saved up to $8.4 billion, while the act reportedly supported about 100K clean energy jobs in under a year as well.

Additionally, the tax credits fuelled community solar, expanded reach to low-income households, and generated economic benefits across multiple states.

Should you buy the dip in US solar stocks on Tuesday?

In short, the Senate’s version of Trump’s spending bill rewinds years of solar momentum. It lowers solar tax credits to 60% in 2026, shrinks them further in the year after, and removes them entirely in 2028.

Investors should note that the upper chamber’s decision to leave incentives for hydro, nuclear, and geothermal unchanged until 2036 could unbalance energy investments over time.

US solar firms, meanwhile, lose financial lifelines, investors pull back, projects stall, and the supply chain faces uncertainty. The outcome? Continued potential weakness in solar stocks and a major setback for the clean energy growth curve.

Investors are, therefore, advised to exercise caution in buying the dip in the likes of Enphase, SolarEdge, Sunrun, or First Solar on Tuesday.   

The post What’s next for US solar stocks after Senate nods on cuts to incentives? appeared first on Invezz

previous post
Sapphire Reserve card: JPMorgan Chase raises fee to $795 with new perks
next post
Streaming overtakes cable and broadcast as the most-watched form of TV

Related Posts

Polymarket to re-enter US market following regulatory clearance

July 21, 2025

Why did Navitas stock soar 30% after announcing...

July 21, 2025

QS stock plunges 17% today: here’s why the...

July 21, 2025

GE Vernova stock faces a crucial test: will...

July 21, 2025

Microsoft SharePoint breach exposes global firms to data...

July 21, 2025

China’s Neta and Zeekr inflated EV sales using...

July 20, 2025

Top catalysts for the German DAX Index this...

July 20, 2025

Top CAC 40 shares to watch: LVMH, BNP...

July 20, 2025

Trump sues Murdoch and News Corp over Wall...

July 19, 2025

El Salvador’s Bitcoin U-turn: no new purchases since...

July 19, 2025
Join The Exclusive Subscription Today And Get Premium Articles For Free

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Polymarket to re-enter US market following regulatory clearance

      July 21, 2025
    • Why did Navitas stock soar 30% after announcing Q2 earnings date today

      July 21, 2025
    • GE Vernova stock faces a crucial test: will GEV rise after earnings?

      July 21, 2025
    • QS stock plunges 17% today: here’s why the drop was no surprise and what’s ahead

      July 21, 2025
    • Microsoft SharePoint breach exposes global firms to data theft

      July 21, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 SwingToTrade.com All Rights Reserved.

    Swing To Trade
    • Stock
    • Politics
    • Business
    • Sports