Renewable energy stocks react to Senate’s tax bill advancement

Investing.com -- Shares of U.S. renewable energy companies showed mixed results in early Monday trading after the U.S. Senate advanced President Donald Trump’s comprehensive tax-and-spending bill.

The legislation preserved tax credits for solar leasing arrangements, where third parties own and install solar panel systems on customers’ properties for a fee. This provision boosted several solar stocks that had faced uncertainty in recent weeks.

First Solar (NASDAQ:FSLR) shares rose 6.6%, while Sunrun (NASDAQ:RUN) climbed 5%, and Fluence Energy gained 11%.

The bill’s advancement comes after a Senate panel earlier this month had proposed phasing out solar and wind tax credits by 2028, which had caused solar stocks to drop sharply.

Bloom Energy (NYSE:BE) shares jumped over 7% as the proposal reintroduced language qualifying fuel cells for tax credits. Plug Power (NASDAQ:PLUG) also saw significant gains, rising 10, as the measure extended construction timelines to secure credits.

Not all renewable energy stocks benefited from the news. Enphase, a solar battery firm, saw its shares fall 4%, while NextEra Energy (NYSE:NEE), a utility company with a portfolio of renewable assets, declined 4%.

RBC Capital Markets analysts noted in a report: "We believe the passage of the updated One Big Beautiful Bill in the Senate has mixed implications for solar-linked clean energy stocks."

Raymond James analyst Pavel Molchanov suggested market reactions might remain subdued following weeks of volatility. "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.

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