Donald Trump’s decisive victory in the US presidential election has spooked clean energy investors that the Inflation Reduction Act could be about to be undermined. Solar stocks sold off sharply on Wednesday in response. The serious threat to the IRA will depend on the Republicans’ ability to secure both houses of Congress. The GOP won the Senate, but it remains unclear which party will gain a majority in the House of Representatives. Trump’s campaign platform says he will seek to end the “socialist Green New Deal,” a reference to the IRA. The law facilitated a clean energy boom in the United States. The three stocks with the most exposure to the IRA are Array Technologies, First Solar and SolarEdge, according to a note from Goldman Sachs on Wednesday. Array is expected to receive $80 million in domestic manufacturing tax credits in 2026, or about 35% of the company’s estimated non-GAAP earnings per share, according to Goldman. The company, which makes devices that track solar panels, was down nearly 20% on Wednesday. First Solar is expected to set aside $2 billion in IRA tax credits in 2026, or 70% of its estimated non-GAAP earnings per share, according to Goldman. The solar panel maker fell about 11% after Trump’s victory. SolarEdge is expected to receive $164 million in IRA tax benefits in 2026, or about 84% of its estimated non-GAAP earnings per share. The company, which makes inverters for residential solar installations, fell about 20% on Wednesday.
Solar Stocks May Suffer Under Trump Due to Reliance on IRA, Goldman Says
