Solar Stocks Crater as Trump’s New Tax Bill Advances
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
0mins
Should l Buy SEDG?
Source: TipRanks
Impact of Tax Bill on Solar Stocks: U.S. solar energy stocks plummeted after the House advanced President Trump's tax and spending bill, which threatens to cut green energy subsidies, including the 30% federal tax credit for rooftop solar installations.
Analyst Predictions: Analysts believe Sunrun (RUN) has significant upside potential with a target price of $11.74 per share, while SolarEdge Technologies (SEDG) is expected to perform poorly with a target price indicating a potential loss.
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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: 34.410
Low
6.90
Averages
32.56
High
44.00
Current: 34.410
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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- Enhanced Dispatchable Capacity: The company expects to have 10 gigawatt-hours of dispatchable capacity online by the end of 2028, with recent dispatches of 18 gigawatt-hours capable of powering 15 million homes for one hour, showcasing its ability to meet surging electricity demand.
- Strong Stock Performance: Sunrun's shares jumped over 12% on Wednesday, marking its best session in nearly four months, reflecting investor optimism about the company's power plant programs, with the stock up nearly 13% year-to-date.
- Rising Market Demand: As electricity demand driven by AI and extreme weather increases, Sunrun's 17 programs leverage 217,000 home battery systems to support the grid during critical hours, effectively reducing energy costs for all ratepayers.
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- Optimistic Analyst Ratings: According to Koyfin, Enphase Energy has a consensus rating of 'Buy', with 8 out of 32 analysts rating it 'Buy' or higher, reflecting a positive outlook for its future growth potential.
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- Single SKU Concept: The company's introduction of single SKU residential inverter products aims to simplify logistics, inventory management, and installation processes, which is expected to significantly enhance operational efficiency for customers and partners, particularly in fast-evolving solar markets.
- Future Product Planning: The upcoming SolarEdge Nexis solution will feature the single SKU concept, and future commercial and industrial inverter models will also be designed to incorporate fewer SKUs, further enhancing market adaptability and flexibility.
- Growth Commitment: Pascal de Boer, General Manager for Europe at SolarEdge, stated that this solution combines power, intelligence, and simplicity, aiming to accelerate the company's business growth in Europe and reflecting its commitment to delivering U.S.-manufactured excellence to global customers.
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- Single SKU Concept: The newly launched single SKU inverters simplify logistics and inventory management while enhancing installation efficiency, which is anticipated to help installers and distributors reduce complexity and increase flexibility in the fast-evolving solar market, thereby strengthening competitive positioning.
- Future Product Planning: SolarEdge plans to incorporate fewer SKUs in future commercial and industrial inverter models, further enhancing product line simplification and ensuring adaptability and flexibility in global markets.
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- Power Bottleneck Issue: Musk highlighted the significant electrical bottleneck created by the rapid growth of AI, asserting that solar energy is essential as the primary power source for AI data centers, thereby establishing a fundamental demand floor that reassures investors about the industry's prospects.
- Criticism of U.S. Tariffs: Musk's direct criticism of U.S. solar tariffs as 'artificial barriers' that inflate deployment costs signals a potential shift towards technological competition rather than protectionism, which could reshape market dynamics and benefit companies like First Solar.
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- Surge in Customer Participation: Sunrun reported that customer participation in its distributed power plant programs for 2025 exceeded 106,000, increasing nearly fivefold from last year, indicating strong demand for home battery storage and solar solutions, thereby solidifying its market position.
- Enhanced Dispatchable Capacity: The company expects to have 10 gigawatt-hours of dispatchable capacity online by the end of 2028, with recent dispatches of 18 gigawatt-hours capable of powering 15 million homes for one hour, showcasing its ability to meet surging electricity demand.
- Strong Stock Performance: Sunrun's shares jumped over 12% on Wednesday, marking its best session in nearly four months, reflecting investor optimism about the company's power plant programs, with the stock up nearly 13% year-to-date.
- Rising Market Demand: As electricity demand driven by AI and extreme weather increases, Sunrun's 17 programs leverage 217,000 home battery systems to support the grid during critical hours, effectively reducing energy costs for all ratepayers.
See More
Enphase Energy Shares Surge 21% in After-Hours Trading
- Significant Stock Surge: Enphase Energy's shares jumped over 21% in after-hours trading, positioning the stock for its best single-day performance since October 2021, indicating strong market confidence in its outlook.
- Positive Market Response: Despite a more than 50% decline in 2025, Enphase continues to see steady demand in markets like California, and is expected to benefit from rising demand for its IQ Batteries, further solidifying its market position.
- Optimistic Analyst Ratings: According to Koyfin, Enphase Energy has a consensus rating of 'Buy', with 8 out of 32 analysts rating it 'Buy' or higher, reflecting a positive outlook for its future growth potential.
- Retail Sentiment Shift: On Stocktwits, retail sentiment for Enphase Energy shifted from 'bearish' to 'extremely bullish', with message volumes surging by 1,116%, showcasing strong investor confidence and positive reactions to the company's prospects.
See More
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- International Export Milestone: SolarEdge has shipped single-phase residential inverters from its Austin, Texas facility to key European markets including Italy, France, and the Netherlands, marking a significant advancement in its international manufacturing and export strategy.
- Single SKU Concept: The company's introduction of single SKU residential inverter products aims to simplify logistics, inventory management, and installation processes, which is expected to significantly enhance operational efficiency for customers and partners, particularly in fast-evolving solar markets.
- Future Product Planning: The upcoming SolarEdge Nexis solution will feature the single SKU concept, and future commercial and industrial inverter models will also be designed to incorporate fewer SKUs, further enhancing market adaptability and flexibility.
- Growth Commitment: Pascal de Boer, General Manager for Europe at SolarEdge, stated that this solution combines power, intelligence, and simplicity, aiming to accelerate the company's business growth in Europe and reflecting its commitment to delivering U.S.-manufactured excellence to global customers.
See More
SolarEdge Launches US-Made Single-Phase Inverters in Europe
- International Market Expansion: SolarEdge is shipping single-phase residential inverters from its Austin, Texas facility to key European markets including Italy, France, and the Netherlands, marking a significant milestone in its international manufacturing and export strategy that is expected to drive business growth in Europe.
- Single SKU Concept: The newly launched single SKU inverters simplify logistics and inventory management while enhancing installation efficiency, which is anticipated to help installers and distributors reduce complexity and increase flexibility in the fast-evolving solar market, thereby strengthening competitive positioning.
- Future Product Planning: SolarEdge plans to incorporate fewer SKUs in future commercial and industrial inverter models, further enhancing product line simplification and ensuring adaptability and flexibility in global markets.
- Technological Innovation: The residential inverter systems from SolarEdge are designed with backup functionality and support for SolarEdge ONE EMS, integrating EV charging and smart energy features, showcasing the company's ongoing innovation and leadership in smart energy solutions.
See More
Elon Musk Calls Solar Energy the 'Linchpin' of Global Power Transition, Boosting CSIQ Stock
- Positive Market Reaction: Elon Musk's declaration at the 2026 World Economic Forum that solar energy is the 'linchpin' of the global power transition has led to a rally in solar stocks, particularly Canadian Solar (CSIQ), which saw a 6.85% increase, reflecting market optimism about solar's future.
- Power Bottleneck Issue: Musk highlighted the significant electrical bottleneck created by the rapid growth of AI, asserting that solar energy is essential as the primary power source for AI data centers, thereby establishing a fundamental demand floor that reassures investors about the industry's prospects.
- Criticism of U.S. Tariffs: Musk's direct criticism of U.S. solar tariffs as 'artificial barriers' that inflate deployment costs signals a potential shift towards technological competition rather than protectionism, which could reshape market dynamics and benefit companies like First Solar.
- Space Solar Prospects: Musk predicted that the lowest-cost energy for AI would soon come from space-based solar satellites launched by SpaceX, aiming for viability within two to three years, a visionary outlook that could revolutionize the energy landscape.
See More
Clean Energy ETF Returns 47% in 2025, Outpacing AI Stocks
- Strong Clean Energy Performance: In 2025, the iShares Global Clean Energy ETF (NASDAQ: ICLN) achieved a 47% return, significantly surpassing the 25% gain of the 'Magnificent Seven' tech stocks, indicating robust investor interest in clean energy.
- Policy-Driven Growth: The law signed by President Trump in 2025 mandates companies to begin construction of wind and solar projects by July 1, 2026, prompting states to expedite approvals, with forecasts indicating that the U.S. will add record clean energy capacity in 2026, further solidifying the sector's growth potential.
- Global Energy Transition: In the first half of 2025, renewable energy generation surpassed coal for the first time globally, with India and China leading in renewable infrastructure, signaling an accelerating demand for clean energy and a positive outlook for the industry.
- Diversified Portfolio: The iShares Global Clean Energy ETF holds over 100 stocks across various renewable sectors, including solar, wind, and fuel cells, with an expense ratio of 0.39%, lower than the industry average, making it attractive for investors seeking low-cost exposure to the renewables transition.
See More
