Renewable power shares experienced mixed performance after new revisions to President Donald Trump’s spending plan created a division of haves and have-nots in the clean energy sector. The latest Senate draft bill includes a tax on solar and wind projects that enter service after 2027 if they use components made in China, and it ends the two most important tax credits for solar and wind projects placed in service after 2027.
However, the rooftop solar industry, particularly companies like Sunrun, was viewed as a relative winner, with Sunrun shares closing approximately 10% higher. This is because the legislation appears to allow tax credits for leased rooftop systems to remain in place through the end of 2027, which was not the case in previous versions of the bill.
Morgan Stanley analyst Andrew Percoco noted that the latest Senate draft had become more restrictive for most renewable players, moving towards a worst-case outcome for solar and wind, with only a few improvements for subsectors. Despite the broader negative implications for the industry, the temporary preservation of leased rooftop system credits offers some relief for Sunrun's business model.
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