Indian Solar Stocks Fall Amid U.S. Clean Energy Policy Rollbacks

On May 23, 2025, shares of Indian solar manufacturers Premier Energies and Waaree Energies experienced significant declines, falling by up to 11%. This downturn mirrored a broader selloff in U.S. solar and clean energy stocks, triggered by the passage of a controversial tax bill by the U.S. House of Representatives. The legislation, backed by President Donald Trump, aims to accelerate the phasing out of clean energy subsidies, raising concerns among investors about the future of solar projects.

The new tax bill proposes rolling back key provisions of the Inflation Reduction Act, including grants for reducing air pollution and greenhouse gas emissions, as well as incentives for purchasing electric heavy-duty vehicles. Notably, the bill plans to eliminate the 30% federal tax credit for installing solar rooftop systems. These changes threaten to undermine the competitiveness of solar projects, potentially leading to delays or cancellations of planned installations.

The market reaction in India reflects global apprehensions about the potential implications of the tax bill on the clean energy industry. Indian solar manufacturers, such as Premier Energies and Waaree Energies, have been expanding their operations in the U.S. to capitalize on the growing demand for renewable energy. However, the recent policy changes introduce uncertainty, prompting concerns about the viability of their investments.

In response to the policy shifts, Premier Energies has paused its plans to build a 1-gigawatt solar cell manufacturing facility in the U.S. The company had previously announced a joint venture with North American solar module maker Heliene to establish the facility. However, the uncertainty surrounding the new tax bill has led Premier Energies to reassess its strategy.

Conversely, Waaree Energies has expressed confidence in its ability to navigate the changing policy landscape. The company has operations in Texas and plans to expand its manufacturing capacity in response to potential import tariffs under the new administration. Despite the policy challenges, Waaree Energies remains committed to meeting the growing demand for solar energy in the U.S.

The developments underscore the interconnectedness of global energy markets and the significant impact of policy decisions on the renewable energy sector. As the situation unfolds, stakeholders in the clean energy industry will be closely monitoring legislative actions and their implications for future investments and project developments.

Source: Outlook Business