Senate Republicans released a draft of the 'One Big Beautiful Bill Act' that proposes to impose a new tax on renewable energy projects sourcing components from foreign entities of concern, primarily China. The bill also phases out the investment tax credit and electricity production tax credit for wind and solar power projects entering service after 2027.
Trade groups warn that these measures, if enacted, could increase the clean energy industry's tax burden by an estimated $4 billion to $7 billion. This punitive tax and the abrupt elimination of key tax credits threaten to eliminate 300 gigawatts of wind and solar projects over the next decade, representing approximately $450 billion worth of infrastructure investment.
Array Technologies' stock fell 8% following the news, reflecting investor concerns over the potential negative impact on project economics and development pipelines. The proposed legislation is seen as a 'worst case outcome' for solar and wind, jeopardizing jobs and potentially increasing electricity prices for consumers.
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