Trump's Executive Order Slashes Green Tax Breaks, Solar Stocks Plummet

President Trump signed an executive order to fast-track the end of clean-energy tax credits for solar and wind projects, eliminating the credits within 45 days after the "Big Beautiful Bill" goes into effect. This decision has led to a drop in solar stocks, with First Solar, Sunrun, and SolarEdge Technologies shares down by 3.89%, over 10%, and 4.3%, respectively. Expert analysts have cut their ratings on Enphase Energy, citing the negative impact of the tax credit elimination on U.S. customer-owned resi solar demand.

July 2, 2025 - President Trump signed an executive order aimed at rapidly eliminating federal support for alternative energy, specifically targeting clean-energy tax credits for solar and wind projects. The order, effective 45 days after the "Big Beautiful Bill" goes into effect, has led to a significant drop in solar stocks. Key players such as First Solar (FSLR), Sunrun, and SolarEdge Technologies have seen their shares decline by 3.89%, over 10%, and 4.3%, respectively [2].

The executive order, signed on July 4, 2025, requires the Secretaries of Treasury and Interior to act on the changes within 45 days. It seeks to "rapidly eliminate the market distortions and costs imposed on taxpayers by so-called 'green' energy subsidies" and aims to end "taxpayer support for unaffordable and unreliable 'green' energy sources and supply chains built in, and controlled by, foreign adversaries" [2].

The order's impact has been immediate, with solar stocks experiencing a sharp decline. Enphase Energy (ENPH), another major player in the solar industry, has seen its stock rating cut by analysts due to the expected negative impact on U.S. customer-owned residential solar demand [2].

The "One Big Beautiful Bill" (OBBBA), which was passed by the U.S. Senate on July 1, 2025, marked a significant shift in clean energy policy. While the bill dropped some controversial provisions, it accelerated the rollback of the solar tax credit, a cornerstone of America's clean energy transition [1].

The accelerated phase-out of the federal solar tax credit, set to expire on December 31, 2025, has created urgency for homeowners and businesses to install solar systems before the credit disappears. The elimination of the tax credit for battery backup systems by the end of 2025 further emphasizes the need for immediate action [1].

Industry analysts expect thousands of residential and utility-scale projects to be delayed or cancelled due to the loss of credits, which could lead to job losses and reduced industry investment. The commercial market, which still qualifies for scaled-down credits through 2028, is expected to see increased focus from installers, potentially reducing homeowner access to experienced installation teams [1].

The executive order and the accelerated phase-out of tax credits threaten to slow down the momentum of the U.S.'s transition to clean energy, potentially increasing long-term energy costs and reliance on foreign suppliers. It remains to be seen how these changes will shape the future of the solar industry and the broader energy landscape [1, 2].

References:
[1] https://greenridgesolar.com/senate-passes-one-big-beautiful-bill-obbba-solar-tax-credit-impact/
[2] https://finance.yahoo.com/news/solar-stocks-slump-trump-executive-142556695.html