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- Trump’s latest executive order aimed at clean energy sent solar stocks tumbling on Tuesday.
- Clean energy stocks plunged on the news and continue to trend downward.
It’s been a tough stretch for the clean energy sector.
Just days after signing the One Big Beautiful Bill Act, President Donald Trump had more bad news for the renewable power market.
On July 7, he issued an executive order aimed at tightening the restrictions on energy tax credits. The order highlighted wind and solar, stating that “For too long, the Federal Government has forced American taxpayers to subsidize expensive and unreliable energy sources.”
Stocks in the sector fell on Tuesday. First Solar and Enphase Energy dropped as much as 5%. Wind and solar producer NextEra Energy fell 4% and SolarEdge Technologies lost 3%.
The landmark budget bill, signed into law on July 4, significantly impacts the clean energy industry already, phasing out the environmental tax credits enacted under President Joe Biden’s Inflation Reduction Act in 2022.
RBC Markets analyst Chris Dendrinos told Business Insider last month that he saw First Solar as well-positioned to withstand the impact of the phasing out of clean energy tax credits, due to its status as a domestic manufacturing leader.
“If you continue to believe that there’s going to be growing energy demand as a result of onshoring of manufacturing processes, artificial intelligence (AI), data center, energy demand, then you’re going to have demand for renewables that continues to remain strong and resilient,” he stated.
However, now the Trump administration has demonstrated that even after passing OBBBA, it remains focused on lowering government support for renewables, even as demand for power from all sources rises amid the boom in AI and other energy-intensive industries.
