Solar stocks plunge as Republican tax bill worse than feared for clean energy

Core Insights - The recent GOP tax bill has significant negative implications for the clean energy sector, particularly affecting solar companies and their business models [1][2][3] Group 1: Impact on Solar Stocks - Solar stocks experienced a sharp decline, with Sunrun falling over 35% due to the termination of key clean energy credits [1] - Enphase and SolarEdge saw a drop of approximately 18% as demand for rooftop solar is expected to decrease [2] - Array and Nextracker, which produce devices for solar panel tracking, fell by 14% and 5% respectively, reflecting the adverse impact on utility-scale solar projects [3] Group 2: Legislative Changes - The GOP bill ends investment and electricity production credits for clean energy facilities that begin construction after the legislation is enacted or enter service after December 31, 2028 [3] - Analysts describe the bill as a "sledgehammer" to the Inflation Reduction Act, indicating a severe setback for the rooftop solar industry, where 70% of installations use lease arrangements [2] Group 3: Company-Specific Outcomes - First Solar's stock only decreased by 1% as the manufacturing tax credit remains intact, which is seen as a positive outcome for the company [4] - First Solar is noted as the largest producer of solar panels in the U.S., benefiting from a strong domestic manufacturing presence [4]