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Shares of Indian rooftop solar panel makers Waaree Energies and Premier Energies took a significant tumble on Friday, May 23rd. Investors seem worried about the future of clean energy support over in the United States, leading to a sharp selloff. Waaree Energies saw its stock plunge by as much as 11% to hit an intraday low of ₹2,666, while Premier Energies dropped 6.12% to ₹1,022.
This sudden nervousness appears to be a ripple effect from some steep losses seen in US clean energy stocks. Big names like Sunrun, America’s top rooftop solar company, and NextEra Energy, a major developer of wind and solar projects, also saw their shares plummet.
So, what's causing all this fuss? It boils down to a controversial tax and spending bill that narrowly squeezed through the Republican-controlled US House of Representatives. This bill, which has the backing of former President Donald Trump, is looking to undo key parts of the Biden administration’s Inflation Reduction Act. Specifically, it aims to scrap the 30% federal tax credit for people installing solar panels on their homes, get rid of grants designed to cut air pollution and greenhouse gas emissions, and eliminate incentives for buying electric heavy-duty vehicles.
The bill passed by a razor-thin margin of just one vote (215-214) and now heads to the Senate for more debate.
This development has understandably spooked investors, especially in solar companies that have a big presence in the US market. Take Waaree Energies, for example. At the beginning of FY26, their order book was a massive ₹47,000 crore, and a whopping 57% of that was tied to exports, according to a CNBC TV18 report citing Jefferies. Both Waaree and Premier get a substantial chunk of their revenue from the US.
It's worth noting that, financially, both companies had been performing well recently.
In the January-March quarter (Q4), Waaree Energies reported a net profit of ₹619 crore, which is a solid 34% increase from the ₹462 crore they made in the same period last year. Their revenue from operations also grew by 36% to ₹4,003.93 crore.
Premier Energies had an even more impressive jump in net profit for the fourth quarter of FY25, soaring 167% to ₹277.8 crore from ₹104 crore the previous year. Their operational revenue climbed 44% to ₹1,621 crore in the same quarter.
Despite these strong earnings, the US policy uncertainty was clearly weighing on the stocks. As of 10:39 am on Friday, Premier Energies shares were still trading 4.19% lower at ₹1,038, and Waaree Energies shares were down 7.13% to ₹2,783.
