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Solar stocks plunge as Republican tax bill worse than feared for clean energy
CNBC ^ | May 22, 2025 | Staff

Posted on 05/22/2025 8:05:56 AM PDT by Red Badger

Solar stocks plunged on Thursday after House Republicans passed a tax bill that terminates key clean energy credits.

Residential solar installer Sunrun plummeted more than 35%. The legislation ends tax credits for installers like Sunrun that lease equipment to customers.

The GOP bill is a “worse than feared” scenario for clean energy, as it takes a “sledgehammer” to the Inflation Reduction Act, Jefferies analysts led by Julien Dumoulin-Smith told clients in a note.

Some 70% of the rooftop solar industry now uses lease arrangements, making the bill disastrous for companies like Sunrun, Guggenheim analyst Joseph Osha told clients.

Enphase and SolarEdge plummeted about 16% and 24%, respectively, as sales of their inverters would take a hit from lower demand for rooftop solar.

The bill also ends the investment and electricity production credits for clean energy facilities that begin construction 60 days after the legislation is enacted or enter service after Dec. 31, 2028. Those credits have played a key role in the rapid expansion of utility-scale solar projects in the U.S.

Solar stocks exposed to the utility sector tumbled, with Array falling more than 13 % and Nextracker down more than 6%. Array and Nextracker make devices that allow solar panels to track the position of the sun.

First Solar, however, fell just over 3% as the bill left the manufacturing tax credit relatively unscathed. First Solar is the biggest producer of solar panels in the U.S. with a large domestic manufacturing footprint.

“Manufacturing subsidies do not appear to have been touched – good news for FSLR,” Osha said. While the bill is bad for solar, Jefferies expects the Senate to make changes to the legislation.


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; Politics/Elections
KEYWORDS: solar; solarstocks; stockmarket

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1 posted on 05/22/2025 8:05:56 AM PDT by Red Badger
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To: Red Badger

Removing subsidies for these parasite industries will save more money than we can imagine.


2 posted on 05/22/2025 8:08:38 AM PDT by hinckley buzzard ( Resist the narrative. )
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To: Red Badger

Oh nooooo, DJIA’s at -10


3 posted on 05/22/2025 8:09:11 AM PDT by struggle
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To: Red Badger; All

Nothing should be subsidized, including corn alcohol. Nothing, if you can’t compete in a fair market, find another trade.


4 posted on 05/22/2025 8:12:19 AM PDT by Cobra64 (ECommon sense isn’t common anymore.)
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To: Red Badger

“Republican tax bill worse than feared for clean energy”

Great news!


5 posted on 05/22/2025 8:12:54 AM PDT by EastTexasTraveler
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To: Red Badger

What does that tell you about the viability of the businesses... if the handouts go away, the company can’t exist.

Therefore, it shouldn’t.

Just another power grab and wealth redistribution scheme.


6 posted on 05/22/2025 8:14:42 AM PDT by mn-bush-man
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To: Red Badger

Their clean energy is the dirtiest


7 posted on 05/22/2025 8:14:43 AM PDT by butlerweave
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To: Red Badger

Some 70% of the rooftop solar industry now uses lease arrangements,


that is interesting..........................

I suspect the leases are resold to investors, who might they be?


8 posted on 05/22/2025 8:15:10 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued, but there must be a warehouse full of them somewhere)
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To: Red Badger

But, but, Solar shouldn’t need govt support to be viable, what’s the problem?


9 posted on 05/22/2025 8:16:11 AM PDT by SaxxonWoods (The road is a dangerous place man, you can die out here...or worse. -Johnny Paycheck, 1980, Reno, NV)
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To: Red Badger

The Gravy Train has reached the station. Everybody off.


10 posted on 05/22/2025 8:18:37 AM PDT by MMusson ( )
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To: Red Badger

During the winter of 2021 some N Texans went three days without power because the Solar and Wind Green Energy saviors were shut down to to ice and no sunshine. I can’t imagine what it will be like if Northern States who rely on it will survive a terrible cold winter.


11 posted on 05/22/2025 8:21:35 AM PDT by antidemoncrat (In a way ge is right as)
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To: Red Badger

“Some 70% of the rooftop solar industry now uses lease arrangements”

A huge rip-off, my neighbors fell for it. The solar company uses the homeowner to make money. You get a fixed bill every month. They get the energy and sell it. They profit. If your electricity goes out, you can’t use the solar, you aren’t even hooked up to it! The solar company makes money even when you have an outage and no power.


12 posted on 05/22/2025 8:21:53 AM PDT by SaxxonWoods (The road is a dangerous place man, you can die out here...or worse. -Johnny Paycheck, 1980, Reno, NV)
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To: Red Badger

Hate to say it but history has taught us that a business built upon a tax break is a short term proposition.


13 posted on 05/22/2025 8:24:30 AM PDT by Lockbox (politicians, they all seemed like game show host to me.... Sting)
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To: Cobra64

If not for subsidies, we would have never gotten the Model T.

HAHAHAHA. Just kidding! 🤣

It’s like that old line from the movie, “Robots”. “Find a need. Fill a need.”

When the need exists and you do, in fact, fill it, the market will reward you. It’s like coasting downhill.

Government incentives are there to push bad ideas uphill.


14 posted on 05/22/2025 8:26:24 AM PDT by cuban leaf (2024 is going to be one for the history books, like 1939. And 2025 will be more so, like 1940-1945.)
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To: Red Badger

https://www.google.com/search?q=most+solar+leases+are+a+scam

most solar leases are a scam anyway, plus they have significant drawbacks and may not be the best option for many homeowners.

Here’s a breakdown of why some consider solar leases problematic:

Disadvantages of Solar Leases:

No Ownership: You don’t own the solar panel system; you’re essentially renting it from the solar company.
No Tax Benefits: You don’t receive the federal solar tax credit or other incentives; the leasing company does.

Lower Long-Term Savings: Lease payments, even with reduced electricity bills, can result in lower overall savings compared to owning the system.

Difficult Home Sales: Selling a home with a solar lease can be challenging, as buyers may not want to assume the lease.

Locked into a Contract: Leases are typically long-term (20-25 years), making it difficult and costly to break the agreement.

Potential Escalator Clauses: Lease payments may increase over time, potentially outpacing electricity savings.
No Increase in Home Value: Leased solar panels don’t typically increase your home’s value like owned systems do.
Potential Issues with Some Solar Leasing Companies:

Pushy Sales Tactics: Some companies use aggressive sales techniques to pressure homeowners into signing leases.
Misleading Information: Salespeople may downplay the drawbacks or make unrealistic promises about savings.

Poor Customer Service: Some companies have been criticized for poor communication and slow response times for maintenance or repairs.

Important Considerations:

Research and Compare: Thoroughly research different solar companies and compare quotes for both leases and purchase options.

Read the Fine Print: Carefully review the lease agreement, paying close attention to terms, escalator clauses, and buyout options.

Seek Professional Advice: Consider consulting with a financial advisor or attorney before signing a solar lease.
In conclusion, while solar leases can provide a way to access solar energy without a large upfront investment, it’s important to be aware of the potential downsides and make an informed decision based on your individual circumstances.


15 posted on 05/22/2025 8:27:01 AM PDT by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: SaxxonWoods

wait until they find out that no one will want to buy their house ...


16 posted on 05/22/2025 8:28:57 AM PDT by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: Cobra64
Nothing should be subsidized, including corn alcohol. Nothing, if you can’t compete in a fair market, find another trade.

Agreed. And I have both solar and an EV. The govt has no businesses picking which industries thrive or fail. Also, the tax credits don't help the end consumers anyway. Those credits distort prices and artificially inflate prices the end consumer pays. (Relax, you'll get $7,500 back when you file your taxes.)

17 posted on 05/22/2025 8:29:22 AM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Red Badger
The GOP bill is a “worse than feared” scenario for clean energy, as it takes a “sledgehammer” to the Inflation Reduction Act,

If solar is losing what they gained under the IRA, how did they survive before the IRA ?
18 posted on 05/22/2025 8:35:51 AM PDT by stylin19a ("Death Smiles At Everyone - Marines Smile Back" - 250 years of smiling - 11/10/2025)
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To: SaxxonWoods
(regarding leased solar) A huge rip-off, my neighbors fell for it. The solar company uses the homeowner to make money. You get a fixed bill every month. They get the energy and sell it. They profit. If your electricity goes out, you can’t use the solar, you aren’t even hooked up to it! The solar company makes money even when you have an outage and no power.

That's ridiculous. Anyone who does decentralized solar should do their homework first to make sure it's a good fit for your climate and your particular power consumption habits. Also buy, not lease, solar equipment. Last but not least, get a hybrid inverter (meaning it can work in both grid-tie and off-grid mode) so that when the grid power goes out it doesn't shut off power to your home.

With my hybrid inverters, I have a circuit going to and from the meter that's separate from the circuits powering my home's electrical panels. So my inverters act like a transfer switch of a backup generator: allowing linemen to work on downed power lines while still powering my home. It also allows me to shut off the grid sell feature (selling excess power to the grid) if the power utility/ regulations charge me high extra fees for the privilege of selling power. (As an analogy, you'd quit paying for a COSTCO or Sam's membership if you didn't buy enough groceries for the cheaper prices to be worth the membership cost.) Thus, I had solar for a while without selling power to the grid as a way to avoid the grid sell fees (as far as the power utility was concerned, I was a normal customer, just not pulling as much power as my neighbors). Only after having solar for a while and studying a years' worth of telemetry did I realize that selling power would lower my bill more than raise it. So I've been selling power now for almost a year. If that ever changes I'll disable the grid sell feature again (always leaving me as having the final say in my relationship with the power utility).

19 posted on 05/22/2025 8:39:10 AM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Red Badger

Barely effects solar energy as an emerging energy. Rooftop solar accounts for a small (20%), shrinking and obsolescent portion of solar energy production. It makes sense for remote sites, preppers, and emergency backups, but its main purpose has been people wanting to jump ahead of the utility-production curve. Now that utilities are on board, why pay the extraordinary, added expense of small-scale production?


20 posted on 05/22/2025 8:45:08 AM PDT by dangus
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