Solar stocks tumble on fears Trump will hamper clean energy progress, repeal IRA

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 9% in premarket trading. The solar panel manufacturer First Solar tumbled 12%. Residential solar stocks Sunrun and Sunnova fell 15% and 20%, respectively. Inverter manufacturer Enphase tumbled 11% 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.

Kamala Harris’ campaign chair Jen O’Malley Dillon told staff in an email Tuesday that the clearest path to victory for the vice president was in the so-called Blue Wall states of Pennsylvania, Michigan and Wisconsin. However, Trump secured his second trip to the White House by penetrating the Democratic stronghold with a win in Wisconsin.