FSLR, ENPH, SEDG, RUN: Beat-down Solar Stocks Rally On Potential Tax Incentive Relief

Sunrun stock rallied 21% while solar inverter makers Enphase Energy and SolarEdge gained 11% and 18%, respectively.

Solar stocks jumped on Tuesday after a Republican Senator said that legislators were considering changes to a provision of President Donald Trump’s signature tax bill, which would have rapidly eliminated tax credits for solar panel installation.

Sunrun stock rallied 21% as investors flocked back to the country’s top residential solar firm, while solar inverter makers Enphase Energy and SolarEdge gained 11% and 18%, respectively. Top domestic solar panel maker First Solar rose 4.5%.

According to a Bloomberg News report, North Dakota Senator Kevin Cramer said on Tuesday that Republicans on the upper chamber of the U.S. Congress committee were evaluating more generous clean energy tax credits, including by pushing back their expiration dates. He also reportedly said senators are discussing potential changes to rooftop solar credits.

“There is a little bit of work being done on rooftop solar,” Cramer said, according to the report.

The draft version of the so-called “Big Beautiful Bill,” which will maintain Trump’s 2017 tax cuts, has proposed the rapid expiry of tax credits for solar leasing companies and homeowners who buy panels outright by 2028. This could severely harm the domestic solar industry, which is already struggling with high interest rates, intense foreign competition, and sluggish demand.

The American Clean Power Association had said earlier this month that the bill “would increase household electricity bills and threaten hundreds of thousands of jobs across the country.” The Republicans, holding a thin majority in both chambers of Congress, can only afford to lose a handful of votes. The cuts could hurt incumbent lawmakers in competitive seats, as the bill could threaten hundreds of jobs.

Retail sentiment on Stocktwits about Enphase, Sunrun, and First Solar was in the ‘neutral’ territory, while retail chatter remained ‘high.’

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