Solar energy stocks dropped sharply on Tuesday as the market digested cuts to renewable power tax credits in the Senate's version of the budget bill.

The Senate version of the bill includes a provision that would fully phase out both solar and wind power tax incentives by 2028. It does, however, keep incentives for nuclear, hydropower and geothermal energy for longer.

The US Senate has proposed a complete phase-out of tax credits for solar and wind energy, as part of amendments to Donald Trump's proposed "One Big Beautiful Bill Act." However, as renewable energy industry insiders point out,