Shares of solar energy companies surged to close out the week after the U.S. Treasury Department released updated rules on renewable energy tax credits that left the door open for small-scale and residential solar facilities.
Residential solar power provider Sunrun (RUN) was among the biggest gainers, soaring 32.8% to $13.92. The rally erased the stock’s yearly losses and lifted its market capitalization to $3.2 billion.
Clean energy solutions company SolarEdge Technologies (SEDG) also saw strong gains, jumping 17.1% to $30.06 and pushing its year-to-date return above 100%.
First Solar Inc. (FSLR), a photovoltaic technology and manufacturing company, climbed 11.1% to $199.95, while solar microinverter developer Enphase Energy (ENPH) advanced 8% to $34.84.
The rally followed the Trump administration’s updated guidance on tax credits for renewable energy projects, which was less restrictive than many investors had feared.
President Trump had previously signed an executive order directing the Treasury Department to impose limits on the credits. Under the new rules, unveiled Friday, larger projects must meet physical construction thresholds to qualify, but residential solar systems are largely unaffected.
“This is much better than expected,” said Phil Shen, a clean energy analyst at Roth Capital Partners, in an interview with Bloomberg.
As Bloomberg Tax reported, the updated rules provide wind and solar projects with clearer criteria for securing clean electricity production credits, requiring them to begin construction within a year or be operational by the end of 2027 to qualify.
Solar stocks: A path forward under Trump
Solar and clean energy stocks were widely expected to face headwinds under President Trump, whose policies have generally favored fossil fuels and sought to roll back certain benefits for renewables, including subsidies.
Yet the Treasury Department’s updated rules indicate that U.S. solar companies may still have a viable path forward under the current administration.
The timing is critical as residential solar demand in the U.S. continues to rise. The Department of Energy identifies solar as one of the nation’s fastest-growing renewable energy sources.
According to the National Renewable Energy Laboratory, installations of residential photovoltaic systems have grown by an average of 37% annually since 2005, when Congress first enacted federal tax credits for solar power.
Data from the Solar Energy Industries Association (SEIA) shows that in 2024 alone, the U.S. solar industry attracted more than $70 billion in private investment.
Even in the Trump era, solar power continues to grow, accounting for the largest share of new generating capacity in the country.
“Solar continued to lead the energy transition in Q1 2025, representing over 69% of new capacity, its highest quarter ever,” SEIA said.
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