US Tax Bill Sends Shockwaves Through Indian Solar Companies, Shares Plummet
US Tax Bill Triggers Sell-Off in Indian Solar Stocks
Shares of Indian solar energy giants Waaree Energies and Premier Energies took a significant hit on Friday, mirroring a sharp decline in US solar and clean energy stocks following the passage of a controversial tax bill.
Significant Drops
Waaree Energies saw its stock price drop by 11%, reaching an intraday low of Rs 2,666 on the BSE, while Premier Energies experienced a decline of over 6%, dropping to Rs 1,017.5. This follows a major rout in US clean energy companies on Thursday, with Sunrun, the largest rooftop solar company in the US, and NextEra Energy, a leading wind and solar project developer, experiencing stock plunges of between 7% and 37%.
Tax Bill Provisions Spark Fears
The sell-off in the US market was triggered by a new tax bill that proposes to significantly roll back key provisions of the Biden Administration’s Inflation Reduction Act. This legislation aims to eliminate several clean energy subsidies, including grants for reducing air pollution and greenhouse gas emissions, as well as incentives for purchasing electric heavy-duty vehicles. The bill also seeks to abolish the 30% federal tax credit for taxpayers who install solar rooftop systems.
Impact on Indian Companies
This bill, narrowly passed in the US House of Representatives by a 215-214 margin and now heading to the Senate, has sent ripples of concern through the Indian solar industry. Waaree and Premier Energies, which derive a substantial portion of their revenues from international markets, are particularly vulnerable. Waaree, for instance, had an order book of nearly Rs 47,000 crore as of Q1 FY26, with about 57% linked to exports.
Market participants fear that any rollback of clean energy incentives in the US could significantly impact global demand, potentially hurting order flows for Indian manufacturers.
