Copper Mountain Solar in El Dorado Valley, pictured on Thursday, Sept. 5, 2024, in Boulder City, Nevada. (Bizuayehu Tesfaye/Las Vegas Review-Journal/Tribune News Service via Getty Images)
Bizuayehu Tesfaye | Tribune News Service | Getty Images
Solar stocks sold off premarket after Donald Trump secured a second trip to the White House.
Solar stocks are falling on fears that Trump’s second term would spell trouble for the Inflation Reduction Act, which has fueled a clean energy boom in the U.S. through tax credits to expand solar energy.
NBC News projected that Trump had gained a sizable Electoral College lead to win the presidency early Wednesday morning.
The benchmark Invesco Solar ETF was down more than 11% in premarket trading. The solar panel manufacturer First Solar tumbled 14%. Residential solar stocks Sunrun and Sunnova fell 18% and 21%, respectively. Inverter manufacturer Enphase tumbled 12% and Nextracker was down nearly 12%.
Trump’s campaign platform calls for the termination of the IRA, which he refers to as the “Socialist Green New Deal.” The IRA is one of President Joe Biden’s signature achievements. The law passed on party-line vote in 2022 without any Republican support.
The future of the IRA, however, will depend not only on whether Trump wins the White House, but whether Republicans also secure control of Congress.
