Sunrun Shares Plummet 40.2% to $6.38 as ‘One Big Beautiful Bill’ Sends Solar Stocks Reeling

Key Moments:

Sunrun’s Stock Price Drops Over 40%

Sunrun led a broad share sell-off across American solar companies following the House of Representatives’ advancement of President Donald Trump’s expansive tax and spending legislation. The proposed bill threatens to dismantle a range of renewable energy subsidies that have supported the sector.

Sunrun’s shares cratered by 40.2% on May 22nd, falling to $6.38 from yesterday’s closing price of $10.66. Thursday also saw BMO Capital Markets slash its outlook on Sunrun to Underperform, reducing its price target to $4 per share compared to the previous $9.

BMO cited pending changes in legislation as a major concern for the company’s future earnings potential, including a possible repeal of Section 48E, which supports residential solar leases. If passed, Sunrun may no longer benefit from the Investment Tax Credit (ITC) starting 2026. Recent drafts have also suggested eliminating Section 25D, which provides residential energy credits.

Solar Sector Hit by Policy Shock as Legislation Targets Key Green Incentives

Dubbed the “One Big Beautiful Bill,” the package is set to eliminate major climate funding measures implemented under the Inflation Reduction Act. Among them, the bill proposes cutting federal grants aimed at reducing emissions and removing the 30% tax credit for installing rooftop solar systems, an incentive critical to the residential solar market. Industry participants now look to the Senate to potentially revise or block these measures before the bill reaches the president’s desk.

Besides Sunrun, SolarEdge Technologies also started today’s session with substantial losses, falling by around 21%. Enphase Energy suffered a steep 17.48% drop, while Solaria was not far behind with its plunge of about 15%. Another stock to suffer substantial losses was Maxeon Solar Technologies, whose share price sank 10.64% to $2.94.