SunRun, Enphase Stocks Tumble as Trump Adds to Gloom in Solar Sector

President Donald Trump issued an executive order Monday aimed at scrapping federal subsidies for wind and solar energy. (DANIEL SLIM/AFP via Getty Images)

Clean energy stocks were tumbling again on Tuesday after President Donald Trump directed federal agencies to get to work on scrapping wind and solar tax credits.

In an executive order signed late Monday, Trump also asked the Interior Department to review and revise any regulations that give preferential treatment to wind and solar over other energy sources.

Shares in SunRun sank 11%, Enphase Energy fell 5.8%, First Solar dropped 3.7%, and NextEra Energy slid 3.9% in early trading. The S&P 500 was flat.

Trump signed his signature tax and spending bill, which includes cuts to tax credits for renewable-energy projects, into law on Friday. He has wasted little time in taking action to implement the bill, directing the Treasury Department to enforce the termination of wind and solar subsidies, in the order issued Monday.

Within the next 45 days, both departments must submit reports to Trump outlining their actions.

The tax bill scrapped renewable energy tax credits after 2026 for any projects yet to start construction. Trump said in Monday’s executive order that the government stood against the subsidies because they burden taxpayers, compromise the electric grid, and make the U.S. dependent on “supply chains controlled by foreign adversaries.”

Write to George Glover at george.glover@dowjones.com