By Jennifer Hiller

Rooftop solar shares tumbled after the House passed President Trump's tax-and-spending package.

Tax credits for both utility-sized and small renewable energy projects were expected to be phased out. But the version of the bill that was approved was tougher than the clean-energy industry expected-and especially bad for rooftop solar.

-- Shares of SunRun, which provides solar and battery-storage systems mostly for homes, plunged about 39%.

-- Inverter and battery provider SolarEdge Technologies fell about 26%.

-- Enphase Energy, which supplies microinverter-based solar and battery systems, sank nearly 20%.

The bill would change the Inflation Reduction Act, a signature law of the Biden administration that includes the energy tax credits. An earlier version rolled back the credit for people who own their systems but would have left it in place for leased systems. The House-approved text also removes the credit for leased systems.

The change is "disastrous for the residential solar industry," said Joseph Osha, analyst with Guggenheim Securities. Osha estimated about 70% of the residential solar industry is now supported by leasing or other financing arrangements.

The bill was negative for the entire sector, said analyst Kashy Harrison of Piper Sandler, and would "mark the end" of the U.S. residential solar business in its current form.

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May 22, 2025 11:04 ET (15:04 GMT)

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