Shoals Technologies Plunges 14.01% as Clean-Energy Tax Credits Face Early End

Shoals Technologies' stock price plummeted by 14.01% in pre-market trading on May 22, 2025, as conservative Republican lawmakers announced their intention to end key clean-energy tax credits earlier than planned.

This move is part of a broader effort to advance President Donald Trump's tax and spending package. South Carolina Representative Ralph Norman stated that House leadership had agreed to end the Inflation Reduction Act tax credits earlier than initially proposed, though no new timeframe was provided. This development has led to a significant decline in the stock prices of several solar energy companies, including Shoals Technologies.

The uncertainty surrounding the future of these tax credits has raised concerns among investors about the long-term viability of the solar energy sector. The potential loss of these incentives could hinder the growth and development of solar energy projects, impacting companies that rely heavily on these credits for their operations and expansion plans.

Additionally, the U.S. International Trade Commission (ITC) has imposed tariffs of up to 3,521% on solar imports from Southeast Asia, further complicating the landscape for solar energy companies. This move is aimed at protecting the domestic solar industry from what the ITC deems as injurious imports, but it also adds to the financial burden on companies that depend on these imports for their supply chain.