Updates shares of companies to market open
By Vallari Srivastava
May 22 (Reuters) - Shares of U.S. solar companies fell sharply on Thursday after the House of Representatives advanced President Donald Trump's sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector.
Sunrun RUN.O led the market rout, with shares falling nearly 41% in early morning trade, SolarEdge Technologies SEDG.O slid nearly 26%, Enphase Energy ENPH.O was down 17.7% and Complete Solaria SPWR.O fell over 15%.
Shares of Maxeon Solar MAXN.O fell 9%, Emeren Group was down 5.2%, JinkoSolar JKS.N dipped 4.7%, while First Solar FSLR.O and Canadian Solar CSIQ.O dropped 5.4% and 6.4%, respectively.
Trump's budget package - which he calls "one big beautiful bill" - would eliminate funding established under the Biden Administration’s Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles.
The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry.
While the industry was already anticipating the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters.
As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill's enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits.
Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA.
"While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House," Molchanov added.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid)
((Srivastava.Vallari@thomsonreuters.com;))