Solar stocks experienced a significant decline after House Republicans passed a tax bill that proposes to terminate key clean energy credits. The legislation aims to end investment and electricity production credits for clean energy facilities that begin construction 60 days after the bill's enactment or enter service after December 31, 2028.
This development is considered a 'worse than feared' scenario for the clean energy sector, as it directly impacts the financial viability of utility-scale solar projects in the U.S. Array Technologies, a major player in the utility-scale solar market, saw its shares fall approximately 3% following the news.
The potential termination of these credits, which have been crucial for the rapid expansion of solar projects, creates substantial regulatory uncertainty for companies like Array. The industry faces a reevaluation of project pipelines and investment strategies in response to these proposed legislative changes.
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