Investing.com -- Shares in U.S. and European solar and renewable energy firms fell Tuesday after Senate Republicans unveiled a bill that would phase out tax credits for wind and solar earlier than for other energy sources, disappointing clean energy advocates hoping for relief from steep cuts passed by the House.
Sunrun (NASDAQ:RUN) saw its shares plummet roughly 25% in premarket trading, while SolarEdge Technologies (NASDAQ:SEDG) and Enphase Energy (NASDAQ:ENPH) plummeted around 20% and 15%, respectively.
In Europe, SMA Solar Technology (ETR:S92G) fell 4% by 08:24 GMT, Orsted (CSE:ORSTED) shed 1.2%, Nordex (ETR:NDXG) slipped about 1%, and RWE (LON:0HA0) dropped 1.3%.
While the Senate proposal drops a provision requiring projects to start construction within 60 days to qualify, it still ends wind and solar credits in 2028. By contrast, incentives for nuclear, hydropower, and geothermal would continue until a 2036 phase-out.
Part of U.S. President Donald Trump’s major economic package, the Senate bill would roll back several measures from the Inflation Reduction Act. The $7,500 electric vehicle credit would be eliminated 180 days after the bill becomes law, rather than at year-end as in the House version.
The Senate proposal also scraps a hydrogen production credit worth up to $3 per kilogram, despite lobbying from companies like Plug Power (NASDAQ:PLUG) and industry groups.
In addition, it removes incentives for both leased and purchased rooftop solar systems, a move analysts warn could severely damage the struggling solar sector. The ongoing uncertainty has already contributed to the bankruptcy of Solar Mosaic, a leading home solar lender.
Unlike the House version, the Senate bill preserves nuclear power credits by removing a 2028 construction deadline that analysts considered impractical.
The Senate aims to pass the legislation and return it to the House for final approval before the July 4 deadline, though further changes are still possible.