May 24, 2025

Solar power CEOs believed the billions of dollars that they invested in Republican congressional districts would ultimately shield their industry from President Donald Trump’s threats to end federal support for renewable energy.

But they may have been disastrously wrong. The tax bill that House Republicans passed this week is a “worse than feared scenario” for solar, analysts at the investment bank Jefferies told clients in a note.

The legislation would terminate key tax credits that have supported the industry’s growth, triggering a broad sell-off of solar stocks on Thursday. The bill does still have to pass the Senate, where Jefferies expects the “unworkable” provisions to be undone.

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