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Impact of New Tax Bill on Sunrun and Enphase Energy: Threat to Rooftop Solar Incentives

May 23, 2025 | Team Kalkine
Impact of New Tax Bill on Sunrun and Enphase Energy: Threat to Rooftop Solar Incentives
Image source: shutterstock

ENPH
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (US$)
RUN:NASDAQ
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (US$)

Rooftop Solar Fallout

The recent tax bill passed by the U.S. House under President Trump proposes eliminating the 30% federal tax credit for residential rooftop solar by the end of 2025, significantly impacting Sunrun and Enphase Energy. Sunrun, which relies heavily on leased solar systems benefiting from the credit, saw its stock drop nearly 41%, facing serious threats to its core business model. Enphase Energy's stock declined around 20%, with added concerns over potential tariff-related cost increases on imported battery components. The accelerated phase-out of solar incentives threatens to raise household electricity costs and cause job losses within the solar sector. Both companies are confronting increased financial uncertainty as analysts revise valuations downward. The bill now moves to the Senate, where its outcome will critically shape the future of rooftop solar adoption and the operational viability of these leading solar technology firms.

Enphase Energy, Inc

Enphase Energy, Inc (NASDAQ: ENPH) is a worldwide energy technology firm that provides microinverter-based solar and battery systems. These systems allow users to generate, use, store, and sell their own solar power, all managed through a smart mobile app. The company designs, develops, manufactures, and markets integrated home energy solutions that oversee power generation, storage, control, and communication through a unified intelligent platform.

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