Solar stocks plummet after Trump's tax bill advances in US House
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
0mins
Should l Buy SEDG?
Source: Reuters
Impact of Trump's Tax Bill on Solar Companies: Shares of U.S. solar companies plummeted after the House advanced President Trump's tax and spending bill, which proposes to eliminate green-energy subsidies, including the 30% federal tax credit for solar rooftop installations.
Industry Response and Future Outlook: Clean energy stakeholders are now focusing on the Senate to lobby against the proposed changes, as the new bill accelerates the timeline for tax credits, requiring solar or wind projects to begin construction within 60 days of enactment.
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Analyst Views on SEDG
Wall Street analysts forecast SEDG stock price to fall
18 Analyst Rating
1 Buy
12 Hold
5 Sell
Hold
Current: 34.590
Low
6.90
Averages
32.56
High
44.00
Current: 34.590
Low
6.90
Averages
32.56
High
44.00
About SEDG
SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company's products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company's power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company's solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Upgrades and Downgrades: The rating changes include upgrades and downgrades for certain stocks, prompting investors to pay attention to these shifts to assess potential investment opportunities and risks.
- Market Reaction Expectations: Analysts' rating adjustments may lead to short-term volatility in the affected stocks, necessitating investors to closely monitor market dynamics to seize investment opportunities.
- Information Source: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing crucial insights for investor decision-making.
See More
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- Disappointing Guidance: First Solar's 2026 revenue guidance of $4.9 to $5.2 billion falls short of Wall Street estimates by approximately $1 billion, indicating significant growth challenges, which led to a sharp decline in stock price as the market becomes more aware of underlying fundamental issues.
- Significant Order Decline: By the end of 2025, First Solar's contracted orders plummeted from 78.3 GW at the end of 2023 to just 50.1 GW, highlighting severe order depletion, with net bookings for 2025 reported at negative 0.9 GW, reflecting weak demand and insufficient market confidence.
- Tax Credit Dependency: The company benefits from $0.17 per watt in 45X tax credits, which constitutes 55% of its selling price; without these credits phasing out starting in 2030, gross margins could collapse from around 40% to 7-10%, severely impacting profitability.
- Manufacturing Issues and Capacity Expansion: First Solar faces quality control issues with its Series 7 modules, resulting in warranty reserves of up to $100 million, while also announcing capacity cuts in Malaysia and Vietnam, indicating risks associated with expanding capacity amid weakening demand.
See More
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Strong Financial Performance: Solar Edge reported a 70% year-over-year increase in revenue and significant improvements in profitability, demonstrating effective operational discipline and a successful turnaround strategy.
Future Growth Prospects: Both companies are guiding for continued revenue growth, with Solar Edge projecting first-quarter 2026 revenues between $290 million and $320 million, reinforcing a positive outlook for stability and expansion.
Strategic Investments: Enphase is focusing on diversifying its technology offerings, including a new AI data center solution, while Solar Edge is expanding into the U.S. commercial solar market, positioning themselves for long-term growth in a competitive landscape.
See More
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- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of SolarEdge Technologies, Inc. breached their fiduciary duties to shareholders, potentially impacting the company's governance structure.
- Legal Relief Options: Long-term shareholders of SolarEdge stock may have the opportunity to seek corporate governance reforms, return of funds, or court-approved financial incentives, aimed at enhancing shareholder rights.
- Importance of Participation: Shareholder involvement can improve a company's policies, practices, and oversight mechanisms, creating a more transparent, accountable, and effectively managed organization, ultimately enhancing shareholder value.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, with attorneys instrumental in implementing corporate reforms and recovering millions for defrauded investors.
See More
