Tanay Dhumal
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By Tanay Dhumal
(Reuters) -Shares of U.S. renewable energy firms saw a mixed performance in early Monday trading after the U.S. Senate advanced President Donald Trump's sweeping tax-and-spending bill.
The final version preserved tax credits for solar leasing — an arrangement where a third-party owns and installs a solar panel system on a customer's property for a fee to use the system and the electricity it generates.
The provision lifted several solar names after weeks of uncertainty. Shares of solar panel maker First Solar rose 7.1% at $163.00 while battery firms Sunrun climbed 7.8% to $8.01 and Fluence Energy gained 3.1% to $6.33.
Earlier this month, a Senate panel had proposed phasing out solar and wind tax credits by 2028, as part of changes to Trump's spending bill, causing solar stocks to fall sharply.
Shares of Bloom Energy jumped over 10% as the proposal reintroduced language qualifying fuel cells for tax credits while Plug Power also gained 16.5%, as the measure extended construction timelines to secure credits.
Not all renewable stocks benefited. Shares of solar battery firm Enphase fell 2.3% to $39.95, while utility firm NextEra Energy, which owns a portfolio of renewable assets, declined 5.8% to $66.80.
"We believe the passage of the updated One Big Beautiful Bill in the Senate has mixed implications for solar-linked clean energy stocks," RBC Capital Markets analysts said in a note.
Analysts cautioned that the market reaction may stay subdued after weeks of volatility.
"I think that in general, we will see mild reaction in the market today. So many of these stocks have already been pressured when the earlier versions of the bill came out, in both the House and Senate, over the past six weeks." said Raymond James analyst Pavel Molchanov.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Tasim Zahid)
