Solar Stocks Sink: Trump Slashes Green Tax Breaks

Solar stocks dropped on Tuesday after President Donald Trump signed an executive order to fast-track the end of clean-energy tax credits late Monday. 

The Details: President Trump issued an executive order that enforces a much faster phaseout of clean-electricity tax credits for solar and wind projects. 

The order eliminates the credits within 45 days after the “Big Beautiful Bill” goes into effect, likely before the end of 2025. 

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Trump's executive order states his opposition to providing subsidies for what he calls "expensive and unreliable" energy sources like solar and wind. 

The order is designed to eliminate any remaining loopholes that could have permitted the continued use of tax credits for these technologies.

“The proliferation of these projects displaces affordable, reliable, dispatchable domestic energy sources, compromises our electric grid, and denigrates the beauty of our Nation’s natural landscape,” Trump said.

Why It Matters: Solar stocks dropped Tuesday morning with First Solar, Inc. (NASDAQ:FSLR) down 3.89%, Sunrun, Inc. (NASDAQ:RUN) down more than 10% and SolarEdge Technologies, Inc. (NASDAQ:SEDG) shares down 4.3%. 

Expert Ideas: TD Cowen cut its rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock to Hold from Buy and slashed its price target from $58 to $45 on Tuesday. 

“The elimination of [the tax credit] at the end of 2025 will negatively impact U.S. customer-owned resi solar demand, which is currently challenged due to elevated interest rates,” TD Cowen analyst Jeff Osborne said, per MarketWatch.  

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