Indian clean energy stocks took a hit on Friday morning as the share price of Waaree Energies slumped over 10%, while the Premier Energies’ share price dropped more than 5% in early trade. The sharp fall came on the heels of a deep sell-off in US-based solar and clean energy stocks overnight, triggered by a controversial new tax bill that could roll back critical subsidies for the sector.
What’s behind the sell-off?
The root cause of the panic can be traced to Washington D.C. A controversial new budget bill, dubbed the “Big, Beautiful Bill” and backed by Republican lawmakers and President Donald Trump, narrowly passed the US House of Representatives in a 215-214 vote.
If it is passed by the Senate, the bill could reverse key clean energy incentives introduced under President Biden’s Inflation Reduction Act.
The bill proposes the elimination of a 30% federal tax credit for homeowners installing rooftop solar systems. Furthermore, it also aims to repeal grants meant for reducing air pollution, curbing greenhouse gases, and promoting electric heavy-duty vehicles. It also includes stricter compliance requirements for foreign entities, which could hamper utility-scale and rooftop installations.
Ripple effects from Wall Street
The US-based clean energy companies were the first to feel the heat. Sunrun, the largest rooftop solar company in the US, and NextEra Energy, a leading wind and solar developer, saw their stocks tumble during the trading session.
Waaree’s heavy exposure to the US Market
The fall in Waaree Energies shares is especially notable due to the company’s US exposure. At the beginning of FY26, Waaree reported an order book worth Rs 47,000 crore, with 57% of it linked to export markets.
Premier Energies caught in the crossfire
Like Waaree, Premier Energies has also been affected by the negative sentiment. The company’s shares fell more than 5% today, mirroring the concerns.
Stock performance snapshot
Waaree Energies has seen a mixed bag of returns lately. While the share price of Waaree Energies has tumbled 7% in the last five trading sessions and slipped 11% over the past month, it still holds on to gains of 3% over a six-month period. On a year-on-year basis, the solar solutions provider has managed a 14% uptick. However, 2025 has not started on a strong note with the stock down 6% so far this year.
Premier Energies shares have also faced pressure. The stock is down 9% in just the last week and has dropped 3% over the past month. Its six-month performance is also in the red, down 5%. Despite this, it posted a 23% return over the past year. That said, like Waaree, 2025 has been rough so far, with Premier’s shares sliding 22% year to date.