RBC Capital Markets sees Senate bill passage having mixed impact on solar stocks

Array Technologies

30/06/2025 12:08

** RBC Capital Markets sees passage of the updated "big beautiful bill" in the U.S. Senate has mixed implications for solar-linked clean energy stocks

** Brokerage says Senate's final version has a negative impact on solar demand with the more restrictive "placed into service" requirements for investment tax credits (ITC) and production tax credits (PTC)

** Adds that language restricting credits for residential solar lease arrangements was removed and has positive implications for Enphase Energy ENPH.O, SunRun RUN.O, and SolarEdge Technologies SEDG.O

** Brokerage believes investor expectations were biased towards the possible removal of the solar leasing restriction but not for changes to the timing of phaseouts from the initial proposal

** "We continue to view utility-scale solar (Array Technologies ARRY.O, Fluence Energy FLNC.O, First Solar FSLR.O, Nextracker NXT.O, and Shoals Technologies SHLS.O) as relatively less impacted given strong energy demand and solar's relative cost competitiveness," - RBC analyst Christopher Dendrinos

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))