Solar stocks plunged after a Senate tax bill proposed ending renewable energy incentives by 2028, sparking a market selloff. The legislation specifically targets tax breaks for solar and wind, while favoring nuclear and other energy sources. Enphase Energy, Sunrun, and SolarEdge Technologies saw significant drops, reflecting the impact of this policy shift on the solar industry. This reversal of previous policies could hamper the financing and growth of solar projects. Electric vehicles are also affected with proposed tax credit changes. News Directory 3 offers insight into the market’s reaction and the potential future of renewable energy. Discover what’s next as the Senate prepares to vote on the bill.
Solar Stocks Plunge as Tax Bill Targets Renewable Energy Incentives
Updated June 17, 2025
Shares of solar companies nosedived Tuesday after the Senate’s version of President Trump’s tax bill proposed ending renewable energy incentives by 2028.The move sent shockwaves through the market, triggering a massive selloff of solar stocks.
The proposed legislation specifically targets tax incentives for solar and wind power, while maintaining support for nuclear, hydropower, and geothermal energy sources.this shift in federal energy policy threatens the growth of the renewable energy sector.
The market reacted swiftly. Enphase Energy plummeted more than 24%,closing at $34.63.Sunrun also took a hit, crashing more than 27%. SolarEdge Technologies dropped 22%,while even industry giant First Solar fell about 12%.
The proposed changes reverse key policies from former President Biden’s Inflation Reduction Act.Senate Republicans aim to pass the bill before the Fourth of July, also raising the federal debt limit from $4 trillion to $5 trillion. Eliminating tax credits could severely impact solar project financing and advancement.
Beyond solar, the legislation also impacts electric vehicles. Senate Republicans proposed ending the $7,500 tax credit for new electric vehicle sales within 180 days of enactment, and instantly ending credits for leased EVs made outside North America.
The solar industry’s struggles are evident in year-to-date returns, down 13.99% compared to the S&P 500’s 1.95% gain. One-year returns show an even starker contrast, with solar declining 44.91% while the broader market gained 10.87%.
what’s next
The Senate is expected to vote on the tax bill before the July 4 recess. The outcome will substantially shape the future of renewable energy and electric vehicle industries.
