Sunrun, SolarEdge, and Other Solar Stocks Jump as Republicans Strip Excise Tax From Spending Bill

Sunrun, SolarEdge Technologies, and peers were rising Tuesday after Senate Republicans removed an excise tax on solar and wind projects from the federal spending bill. (Courtesy First Solar)

Solar and wind stocks soared Tuesday as President Donald Trump’s tax-and-spending bill narrowly passed the Senate, shortly after legislators stripped it of a last-minute excise tax on renewable energy projects.

Sunrun surged 11%, SolarEdge Technologies rose 8.1%, and Enphase Energy was up 4%.

NextEra Energy, a leading provider of wind and solar power, gained 4.2%. Shares of First Solar, the largest solar manufacturer in the U.S., were unable to hold onto their gains and slipped 1.1% after rising earlier in the session.

The tax was meant to penalize projects placed into service after 2027 that sourced components from “prohibited foreign entities” such as China.

The legislation now must clear the House, with Republicans striving to meet a self-imposed deadline of July 4. While the GOP has a slight majority in the chamber, some lawmakers have expressed reservations over the bill’s cuts to Medicaid as well as its overall cost.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com