The good news: All the drama around the Republican tax and spending bill will soon be over, as the House of Representatives voted 215-214 to push the bill through to the Senate for a final vote that could happen as soon as today.
The bad news: Deep amid the 1,000 pages of legislation and 42 amendments was one key revision. In order to get the bill across the finish line in the House, Congress completely cut clean energy credits.
It’s a serious blow to renewable energy companies, which only a few weeks ago were popping higher on the news that the clean energy credits included in the bill would stick around longer than anticipated. The original language of the bill still cut the credits granted to these companies as part of the Biden Administration’s Inflation Reduction Act, but they would be slowly phased out through the end of 2031. Now, those credits will go the way of the dodo by the end of 2028.
Cloudy with a chance of losses
Those credits were essential to reduce the high costs of rooftop solar panel installation in American homes, and help companies recoup up to 50% of installation costs, according to Barrons. That’s why Sunrun, the biggest rooftop-solar company in the country, plunged 37.05%. Inverter manufacturers Enphase and SolarEdge Technologies crumbled 19.63% and 24.67%, respectively.
Solar projects at the bigger, utility level will be punished as well. The bill also kills the credits for renewable energy power plants that begin construction 60 days after the legislation is enacted or enter service after December 31, 2028, which is why Array lost 3.09% and Nextracker sank 3.13%.
It’s not just solar getting axed today. Wind power projects are losing credits as well, sending shares of NextEra Energy tumbling 6.43% and Vestas 5.22% lower.
And, one ray of hope: The Senate may make further amendments to the bill that reduce today’s carnage to a mere massacre—but with the bill passing in the House by razor-thin margins, don’t bet on senators rocking the boat by standing up for clean energy.—MR
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