Trump slashes subsidies, US solar industry bankruptcy surges

The U.S. clean energy industry is facing the harshest reality shock since the Trump 2.0 era: two photovoltaic industry giants filed for bankruptcy this month, and photovoltaic stocks plummeted. Analysts say this is just the beginning of the potential destruction of the industry's survival foundation due to the congressional tax reform bill.

According to reports, in June, two heavyweight companies in the photovoltaic industry—residential solar supplier Sunnova and financing company Mosaic—successively filed for bankruptcy protection. Sunnova explicitly listed "the uncertainty of the national commitment to solar energy" as one of the factors for its bankruptcy in its filing. These two companies have become the biggest "victims" of the industry since the Trump 2.0 era.

According to BankruptcyData, nine large clean energy companies have already filed for bankruptcy this year, approaching last year's total of 16 bankruptcies.

Carter Atlamazoglou, Managing Director at FTI Consulting focusing on renewable energy, candidly stated:

"Companies are facing liquidity pressures, and we are seeing the real plight of the industry. Things are heading towards a critical moment."

Senate "Betrayal" Expectations: Wall Street Bet Wrong

The photovoltaic industry had previously hoped that the Senate would soften the House's significant cuts to residential solar subsidies in Trump's "Big Beautiful" bill. However, the latest draft from the Senate largely maintains the House's hardline stance, only slightly delaying the timeline for the cancellation of certain tax credits.

An earlier article from Wall Street Insight pointed out that as part of Trump's "Big Beautiful" tax reform bill, the U.S. Senate proposed a plan to gradually eliminate federal tax credits for the solar industry by 2028. The draft bill shows that tax credits for solar and wind projects will be cut by 60% in 2026 and completely eliminated by 2028, while under current law, tax incentives will not begin to gradually decrease until 2032.

In response, Carter Atlamazoglou stated:

"The situation is not yet finalized, but it looks very negative. What we are facing is tremendous uncertainty, which has left anyone considering residential solar—from homeowners to financiers—basically on the sidelines."

The market votes with its feet faster than policy-making. Following the release of the Senate draft, U.S. photovoltaic stocks were severely hit:

Solar leasing company Sunrun's stock plummeted by 36%; solar system technology manufacturer Enphase Energy fell by 21%; panel manufacturer First Solar dropped by 19%; and technology enhancer SolarEdge was down by 30%.

Jefferies clean energy analyst Julien Dumoulin-Smith pointed out:

"The market generally expects the Senate draft to relax policies, but if residential solar is excluded here, the chances of it being reintroduced in subsequent versions will obviously decrease. This is why you see such drastic fluctuations in the market."

The industry faces a survival crisis: 60% demand collapse imminent

In the face of increasing policy uncertainty, plummeting stock prices, and a wave of bankruptcies, the entire photovoltaic industry is at risk, and the numbers are more brutal than any rhetoric.

Ara Agopian, CEO of Solar Insure, predicts:

"Demand will decline by 50% to 60%. This will severely impact many solar companies, many of which will go out of business because they simply cannot operate without tax credits."

Abigail Ross Hopper, CEO of the Solar Energy Industries Association, stated at a gathering in Washington:

"We are fighting for survival. In the residential solar industry alone, 1,500 small businesses and over 250,000 jobs are at risk."

Dan Conant, CEO of West Virginia installation company Solar Holler, bluntly stated:

"We only have six months, and thousands of businesses must completely reshape their business models in a matter of months. This is simply not possible."