House Republicans passed a tax bill that terminates key clean energy credits, leading to a 37% plummet in shares of residential solar installer Sunrun Inc. The legislation specifically ends tax credits for installers like Sunrun that lease equipment to customers, a model widely adopted by approximately 70% of the rooftop solar industry.
Jefferies analysts described the GOP bill as a "worse than feared" scenario for clean energy, stating it takes a "sledgehammer" to the Inflation Reduction Act. Guggenheim analyst Joseph Osha noted the bill's disastrous implications for companies like Sunrun due to their reliance on lease arrangements.
The bill also includes provisions to end investment and electricity production credits for clean energy facilities that begin construction 60 days after enactment or enter service after December 31, 2028. This legislative action creates significant uncertainty and potential financial headwinds for Sunrun and the broader solar sector.
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