Clean energy stocks rose on Tuesday after a tax on solar and wind projects was removed from the Senate version of the One Big Beautiful Bill Act.
Shares of NextEra Energy, the largest renewables developer in the U.S., rose nearly 3% after the Senate narrowly passed President Donald Trump’s bill on Tuesday. AES, a leading renewable provider, rose almost 2%. The megabill will now go to the House of Representatives, where lawmakers will consider the Senate’s changes.
The clean energy industry was surprised and outraged to find over the weekend that a tax on wind and solar projects had been inserted into a version of the Senate legislation. The tax applied to projects that use components from foreign entities of concern above a certain threshold. Foreign entities of concern is widely understood to basically refer to China.
But the tax was ultimately struck from the Senate legislation, the American Clean Power Association (ACP) and Solar Energy Industries Association (SEIA) told CNBC. The tax was punitive and would have added up to $7 billion to the solar and wind industry’s burden, said John Hensley, ACP’s senior vice president for market analysis.
The Senate bill still phases out the clean electricity investment and production tax credits for wind and solar, though the timeline isn’t quite as strict as previous versions of the legislation. Those credits have played a crucial role in the expansion of renewable energy in the U.S.
The benchmark Invesco Solar ETF (TAN) was up about 4%, while the iShares Global Clean Energy ETF (ICLN) was trading more than 1% higher after the legislation passed.
Shares of First Solar, the largest solar panel manufacturer in the U.S., slipped less than 1%. Sun tracker manufacturers Array Technologies and Nextracker jumped more than 11% and about 5%, respectively.
Residential solar installer Sunrun rose 9% while inverter manufacturers SolarEdge and Enphase were up about 8% and 4%, respectively.
But SEIA cautioned that the improvements in the Senate bill are limited and the legislation overall is still harmful to renewable energy. ACP described the bill as “a step backward for American energy policy.”
“This legislation undermines the very foundation of America’s manufacturing comeback and global energy leadership,” Abigail Ross Hopper, the CEO of SEIA, said in a statement. “If this bill becomes law, families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker.”
Why oil prices swung so wildly during the Iran-Israel conflict and where the market goes from herePlay this natural gas stock for a big breakout, says Carter WorthRooftop solar stocks face ‘wipe out’ but First Solar shares could double, says clean energy investorWall Street thinks these comeback stocks can keep going as S&P 500 nears a new highTrack all the latest coverage of oil prices and the oil and gas industry at CNBC.com. Read More Details
Finally We wish PressBee provided you with enough information of ( Chicago-bound flight makes emergency landing for ‘possible smoke' in aircraft )
Also on site :
- Russell Crowe, 61, Debuts a Svelte and Dapper Look at Wimbledon
- Dozens dead in pharmaceutical factory blast in southern India
- Elon Musk says Trump’s ‘Big Beautiful Bill’ could spell disaster for America. Here are its biggest pain points, according to critics