Shares of U.S.-based renewable energy companies exhibited a mixed performance in Monday’s early trading following the U.S. Senate’s progress on President Donald Trump’s expansive tax and spending bill.
A key element of the bill retained tax incentives for solar leasing models, where third-party companies own and manage solar panel installations on customers’ properties for a fee. This development lifted several solar-related stocks that had faced uncertainty in recent weeks.
First Solar (NASDAQ:FSLR) saw its shares climb 6.6%, Sunrun (NASDAQ:RUN) rose 5%, and Fluence Energy experienced an 11% surge.
The Senate’s move comes after earlier proposals from a Senate committee suggested a gradual elimination of solar and wind tax credits by 2028, a plan that had caused a sharp decline in solar stocks.
Fuel cell company Bloom Energy (NYSE:BE) enjoyed a gain of over 7% after the bill reinstated tax credit eligibility for fuel cells. Similarly, Plug Power (NASDAQ:PLUG) increased by 10%, benefiting from extended construction deadlines to qualify for tax credits.
However, the bill’s passage did not uplift all players in the sector. Enphase Energy, a company specializing in solar battery solutions, saw its stock drop 4%, while NextEra Energy (NYSE:NEE), a utility with a significant renewable asset portfolio, declined by 4%.
Analysts from RBC Capital Markets commented that the Senate’s approval of the revised “One Big Beautiful Bill” presents mixed outcomes for solar-linked clean energy equities.
Raymond James analyst Pavel Molchanov noted that market reactions might remain modest after weeks of turbulence. “I think that in general, we will see mild reaction in the market today. So many of these stocks have already been pressured when the earlier versions of the bill came out, in both the House and Senate, over the past six weeks,” Molchanov said.