Solar stocks, including Sunrun which fell 10.6%, declined after reports revealed the Trump administration directed federal agencies to strengthen provisions to repeal or modify tax credits for solar and wind energy projects. President Donald Trump also made negative comments about renewable energy sources, creating a chill through the renewable energy sector.
The directive to review and potentially eliminate crucial tax incentives is seen as a significant threat to the financial viability of future solar and wind projects. This move escalates the policy risk for Sunrun and the broader industry, which relies on these credits to make clean energy solutions economically attractive.
This development follows a period of legislative uncertainty surrounding the "One Big Beautiful Bill Act," where various versions of the bill proposed changes to clean energy tax credits. The White House's explicit stance signals a more aggressive approach to curtailing federal support for renewables.
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