Solar stocks have been in a multi-year downtrend, and U.S. policy decisions have deepened it. The Trump administration's tax overhaul ended the 30% homeowner tax credit (Section 25D) at the end of 2025, years ahead of schedule.
That created a pull-forward effect, as seen in the earnings reports of companies like Enphase Energy (NASDAQ: ENPH) and SolarEdge Technologies (NASDAQ: SEDG). Homeowners rushed to install systems before the credit vanished. Predictably, demand has dropped sharply in 2026.