…Tax incentives to be phased out
The U.S. Senate has introduced the “One Big Beautiful Bill,” proposing to phase out clean energy tax credits for solar and wind by 2028. Under the bill, incentives will be reduced to 60% in 2026, drop to 20% in 2027, and end in 2028. It also seeks to terminate the 30% residential solar tax credit within 180 days of passage.
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Market impact on solar stocks
The announcement led to sharp declines in solar stocks. Enphase Energy fell by 23.91% to $34.95, SolarEdge Technologies dropped 35.90% to $15.37, SunRun declined over 41% to $5.66, and First Solar lost 16.92%, closing at $145.60.
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Shift in energy policy
While solar and wind face cuts, the bill retains full tax credits for hydro, nuclear, and geothermal energy until 2033, with reductions starting in 2036. This move indicates a policy shift towards earlier energy frameworks.
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Industry concerns
Industry stakeholders have expressed concern that the move may increase costs, reduce adoption, and slow the clean energy transition. Companies are reassessing their plans amid growing uncertainty.
