SMA Solar rises on less strict than expected U.S. subsidy rules

Sma Solar Technology AG

18/08/2025 09:30

** Shares in Germany-based photovoltaic company SMA Solar rise around 12% after the U.S. Treasury Department on Friday unveiled stricter subsidy rules for wind and solar projects

** The revisions change longstanding definitions in the United States for what it means for a project to be considered under construction by requiring developers of big solar arrays and wind farms to complete physical work rather than simply show that they have invested capital

** Jefferies analysts say the leaked U.S. treasury guidance proved less restrictive than many had anticipated

** According to the broker, "the guidance introduced a broad list of excusable disruptions, that won't jeopardize a project's eligibility for tax credits"

** "For SMA, this is a clear positive, given reduced regulatory uncertainty for large scale projects", the broker adds

** Jefferies analysts also say that wind and solar projects have clear support through 2029+

** Stock in competitor Nordex is up 3.9%

** Shares of SMA Solar are the top gainer of the German small-cap .SDAXI index

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))