Solar Stocks Plunge as Trump Tightens Green Energy Tax Perks

July 8 - Shares of several solar firms slumped Tuesday after former President Donald Trump signed an executive order targeting renewable energy tax credits.

Enphase Energy (ENPH) and AES Corp. (AES) were among the steepest early decliners on the S&P 500, down about 5% and 4%, respectively. NextEra Energy NEE, First Solar FSLR, and NRG Energy NRG also fell more than 3%.

The order instructs the U.S. Treasury to ramp up enforcement on eligibility for solar and wind tax credits. It follows the recent passage of the Big Beautiful Bill, which phases out incentives for projects that begin after 2026 and limits service timelines to the end of 2027.

Sunrun RUN sank nearly 10%, leading losses among solar players. Shoals Technologies (SHLS) dropped 8%, while Array Technologies ARRY, Vistra (VST), and Solaredge Technologies SEDG lost between 3% and 4%. Other notable decliners included Quanta Services PWR, Constellation Energy CEG, and GE Vernova GEV.

The executive order argued that green subsidies undermine the U.S. grid and increase reliance on foreign-controlled supply chains.