The proposed changes could accelerate the expiration of current tax incentives, impacting the deployment of 60 gigawatts of renewable energy capacity annually. The uncertainty surrounding these incentives has already affected American solar stocks, with companies like Enphase, SunRun, and First Solar experiencing significant declines in their share prices. The potential rollback of these incentives poses a risk to the growth of clean energy in the U.S., which accounted for 93% of new generating capacity last year.
Key takeaways:
- Tesla's energy business is threatened by a House Republican bill that seeks to undo parts of the Inflation Reduction Act, including tax credits for residential solar installations and clean energy projects.
- The potential repeal of these tax credits could significantly impact Tesla's energy division, which saw a 67% increase in revenue in the first quarter, bringing in $2.7 billion.
- Tesla is lobbying Senate Republicans to maintain the energy tax credits, arguing that their removal would threaten America's energy independence and the reliability of the grid.
- The proposed changes have already negatively affected American solar stocks, with companies like Enphase, SunRun, and First Solar experiencing significant declines in their share prices.