First Solar and Enphase Energy Decline Amid Trump's Renewables Criticism

First Solar and Enphase Energy are leading the losers in the renewable energy sector, as President Trump escalates criticism of the industry. Shares of First Solar fell 6.8% and Enphase Energy dropped 4.6% on Thursday. Trump's criticism of renewable energy comes after his vow to protect the coal industry. The sector has been struggling due to declining demand for coal and increased competition from renewable energy sources.

Renewable energy stocks took a significant hit on Thursday, with First Solar (NASDAQ:FSLR) and Enphase Energy (NASDAQ:ENPH) leading the pack as two of the day's biggest losers on the S&P 500. First Solar's shares fell by 6.8% while Enphase Energy dropped 4.6% [1].

The decline came amidst escalating criticism from President Trump, who accused solar and wind energy of driving "record-breaking increases in electricity and energy costs" in states that rely on them [2]. Trump vowed not to issue any approvals for solar and wind projects under his administration and accused renewable energy of being a "scam of the century" [1].

The president's comments follow his administration's tightening of federal permits for renewable energy projects and the U.S. Department of Agriculture's decision to stop funding solar panels on productive farmland and allow solar panels manufactured by foreign adversaries in projects funded by the department [2].

First Solar and Enphase Energy have been among the companies most affected by these developments. First Solar, known for its efficient solar panels, has seen its stock price decline despite being a profitable solar stock [1]. Enphase Energy, which specializes in microinverter technology, has a strong balance sheet and is positioned to thrive as rates decline [1].

The renewable energy sector has been grappling with declining demand for coal and increased competition from renewable energy sources. Despite Trump's claims, solar and battery storage have been shown to ease the supply-and-demand gap fastest [2]. However, the acceleration of new AI data centers and crypto-mining facilities have also contributed to increased electricity prices, with data centers projected to need an additional 150-400 TWh of electricity per year by 2028 compared to 2023 levels [2].

The Big Beautiful Bill Act, which ends tax credits for wind and solar by the end of 2027, has also played a role in the sector's struggles [2]. These tax credits have been crucial in the expansion of U.S. renewable energy.

References:
[1] https://seekingalpha.com/news/4488024-first-solar-enphase-lead-sector-losers-as-trump-escalates-renewable-energy-criticism
[2] https://finance.yahoo.com/news/renewable-energy-stocks-fall-trump-163354901.html