Solar Stocks Are Climbing Higher Wednesday: What's Going On?

Stocks in the solar sector are trading higher Wednesday on possible continued momentum after the U.S. Senate passed the “One Big Beautiful Bill”.

What To Know: According to Reuters, the bill would allow another year for wind and solar projects to begin construction while still qualifying for federal tax credits, giving developers extended time to leverage incentives. It also modifies the eligibility timeline tied to Inflation Reduction Act credits, requiring that projects begin construction by 2026 rather than be placed in service by that date.

Furthermore, the Senate dropped a proposed excise tax that would have applied to wind and solar developments failing to meet strict domestic content and labor standards. The change came after pressure from a group of bipartisan senators, including Joni Ernst, Chuck Grassley, and Lisa Murkowski, who opposed the added costs for developers.

Shares of renewable energy stocks may be trading higher as the removal of financial penalties and extension of tax credit deadlines contribute to investor optimism. Some of the stocks in the solar sector that are trading higher include Sunrun Inc. (NASDAQ:RUN), JinkoSolar Holding Company Limited (NYSE:JKS) and Enphase Energy, Inc. (NASDAQ:ENPH).

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RUN Price Action: At the time of writing, Sunrun stock is trading 2.38% higher at $9.25, JinkoSolar stock is trading 10.8% higher at $23.91 and Enphase stock is trading 1.48% higher at $41.53 according to data from Benzinga Pro.

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