Renewables stocks rally as U.S. Senate drops excise tax

Investing.com -- Renewable energy stocks surged after the U.S. Senate removed a widely criticized excise tax from its sweeping GOP tax bill, offering relief to a sector that had feared significant headwinds under the Trump administration.

European names led gains, with Vestas soaring over 10%, SMA Solar jumping 12%, and Orsted (CSE: ORSTED) rising 3%.

U.S. renewable stocks also rallied on Tuesday, with Sunrun (NASDAQ: RUN) closing up over 10%, Enphase Energy (NASDAQ: ENPH) gaining 3%, and SolarEdge Technologies (NASDAQ: SEDG) advancing 7%.

The momentum has carried into Wednesday’s premarket, with Enphase up another 1.8%, FirstSolar rising 0.6%, and Sunrun adding 1.3%.

While the Senate bill removed the excise tax that many in the industry viewed as an existential threat, it still includes shortened phaseouts for certain clean electricity credits.

However, new provisions offer a four-year safe harbour for projects beginning construction within a year of enactment, making them eligible for benefits until 2030.

The legislation now heads to the House, where opposition to remaining clean energy credits may shape the final outcome.

You May Also Be Interested In

• U.S. debt tops $40 trillion
• Ocean Power Technologies revises fiscal 2026 results after audit
• IsoEnergy and Disa Technologies close deal to form Disa Uranium Corp