Renewable energy stocks surged Monday morning after the U.S. Senate finalized revisions to former President Trump’s spending bill, opting to preserve critical tax credits for solar and clean energy projects. The move marks a significant shift from earlier proposals that threatened to phase out these incentives.
Sunrun (RUN) led the rally with a 10% gain, followed closely by First Solar (FSLR), up 9%, and Fluence Energy (FLNC), which also jumped 10%. Bloom Energy (BE) rose 7.5%, buoyed by a provision that reinstates tax credit eligibility for fuel cells.
The final legislation notably maintained tax credits for solar leasing — a financing model where a third party installs and owns solar panels on a customer’s property in exchange for a fee. This structure has been vital to the residential solar market’s growth.
Earlier this month, a Senate panel had proposed phasing out both solar and wind tax credits by 2028, sparking a sell-off in renewable stocks. The reversal comes after lobbying from industry groups and clean energy advocates, who warned of significant job losses and investment pullback.
Bloom Energy’s shares climbed even higher during intraday trading, up more than 10%, as the bill also extended construction timelines for fuel cell projects to qualify for incentives. Plug Power (PLUG) gained 16.5% in response to the same provision.
Despite Monday’s rally, analysts urged caution. “While the tax credit relief is a clear positive, the sector remains volatile and sensitive to future political shifts,” said one energy strategist. After weeks of uncertainty, markets may take time to stabilize.
Still, the decision marks a near-term win for the clean energy sector, signaling continued bipartisan support for the transition away from fossil fuels — at least for now.
