The U.S. renewable energy sector demonstrated conflicting performance on Monday after the Senate passed President Donald Trump’s tax-and-spending bill which maintained essential clean energy tax credits.
The solar leasing industry experienced positive growth as First Solar rose 7.1% and Sunrun increased 7.8% because the bill maintained tax credits for third-party ownership models. The market value of Bloom Energy exceeded 10% because of revived fuel cell incentives and Plug Power stock price increased by 16.5% due to extended project deadlines.
However, the sector’s reaction was uneven. The stock prices of Enphase Energy declined by 2.3% and NextEra Energy dropped almost 6% because investors reevaluated the complete effects of the bill following recent market instability.
The wind and solar sector faced uncertainty when earlier drafts of the legislation proposed eliminating tax breaks for these technologies until 2028. The final version of the bill maintained some level of support but included provisions that imposed penalties on projects using Chinese-made components.
RBC Capital Markets described the outcome as a “mixed bag” because several stocks had already incorporated the risk into their prices. The analysts at Raymond James predict that the market will show minimal response in the future.
The “One Big Beautiful Bill” has created both positive and negative feelings among clean energy investors because the industry faces political challenges despite growing demand for renewable power.
