Solar stocks, including Sunrun which slipped more than 27%, were under pressure after the U.S. Senate's version of President Donald Trump's spending bill kept cuts to renewable energy incentives. The Senate bill includes a provision that would fully phase out both solar and wind power tax incentives by 2028.
Raymond James Washington policy analyst Ed Mills noted that while the Senate proposal is an improvement from the House-passed version, it still represents a "material negative" for renewable energy investment. The incentives for nuclear, hydropower, and geothermal energy are retained for longer periods.
The proposed phase-out of these tax credits, which were key pillars of former President Joe Biden's Inflation Reduction Act, creates significant uncertainty for the solar industry. This legislative development indicates a challenging policy environment for Sunrun's business model, which relies on these incentives to make clean energy accessible.
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