Shares of U.S. solar energy companies tumbled after Republicans controlling the U.S. Senate Finance Committee unveiled changes to President Donald Trump's sweeping tax-cut and spending bill. The proposed changes would phase out solar, wind, and energy tax credits by 2028.
This modified text of the 'One Big Beautiful Bill Act' accelerates the timeline for ending these incentives, which were previously expected to last longer. The bill also extends tax credits for hydro, nuclear, and geothermal power to 2036, creating a disparity in support for different energy sources.
The potential blow for solar companies comes amid already weak U.S. residential demand for solar, exacerbated by high interest rates and metering reforms in California. The accelerated phase-out of tax credits introduces significant uncertainty and financial headwinds for the solar industry, including SolarEdge.
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