Solar, clean energy stocks decline as Trump victory raises concerns for renewable progress
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First Solar (NASDAQ:FSLR) -14% and Enphase Energy (NASDAQ:ENPH) -13% shares plunged premarket as traders digest Donald Trump’s historic win and re-election as the 47th President of the U.S.
The election has raised worries among traders that the new Trump administration will weaken support for the solar industry, as well as other forms of alternative energy such as wind and hydroelectric power.
More specifically, Trump in the White House and a reclaimed Republican Senate could pave the way to repealing the Inflation Reduction Act, which has benefited clean energy stocks with tax credits.
Trump has repeatedly talked about terminating the IRA in his campaign. The IRA passed in 2022 and was one of the milestones of President Joe Biden’s administration. However, with the Republican Party now holding a majority of both the Senate and House of Representatives, the future of this act remains murky.
The new President-elect has said that a victory by Kamala Harris would mean “fossil fuel will be dead” and the U.S. would “go back to windmills, and we’ll go back to solar, where they need a whole desert to get some energy to come out,” although he said “by the way, I’m a big fan of solar.”
Trump’s last administration dismantled several major climate policies and over 100 environmental regulations around clean air, water, wildlife and toxic chemicals.
Other solar stocks have plunged ahead of market open on Wednesday: Sunrun (RUN) -16%, SolarEdge Technologies (SEDG) -15%, Canadian Solar (CSIQ) -14%, Sunnova Energy (NOVA) -22%, Shoals Technologies (SHLS) -9%, Array Technologies (ARRY) -12.6%, Maxeon Solar Technologies (MAXN) -12.4%, Fluence Energy (FLNC) -12%, JinkoSolar (JKS) -16%, Daqo New Energy (DQ) -11%.
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- Solar, clean energy stocks jump as new poll indicates potential Harris election win
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