Solar Stocks Drop After US Tax Bill Threatens Clean Energy Support – Shares of top Indian solar companies like Waaree Energies and Premier Energies fell sharply—by 10% and 5%—after former US President Donald Trump announced plans to cancel a clean energy bill passed under President Biden. Major US clean energy companies like Sunrun and NextEra also saw big drops, with their shares falling by 37% and 7% on Friday.
Why Are Solar Stocks Falling?
The drop happened after the US House of Representatives narrowly passed a new tax bill (215 votes to 214), supported by Trump. This bill would remove key parts of the Biden administration’s clean energy plan, including:
- Grants to fight air pollution
- Support for electric heavy-duty vehicles
- A 30% federal tax credit for people who install rooftop solar panels
The bill still needs Senate approval, but it has already caused concern among investors in clean energy—especially those relying on US markets.
Impact on Indian Companies
Waaree Energies is especially affected because 57% of its business comes from the US. Premier Energies only earns 3% of its revenue from US exports, but it is planning to open a new solar factory in the US, which could now be at risk due to policy changes.
What the Companies Are Saying
A spokesperson for Waaree said India is not seen as a concern under the new US bill, and they believe it could actually benefit India. Premier Energies is expected to release a similar statement soon, but more details are needed to understand how the situation will develop.
Disclaimer: The information in this article is for general informational purposes only and does not constitute financial or investment advice. Market conditions and government policies are subject to change. Readers are encouraged to conduct their own research or consult with a qualified financial advisor before making any investment decisions.
