Shares of Premier Energies Ltd. and Waaree Energies Ltd. dropped sharply on May 23, 2025, as investors reacted to a new US tax bill threatening the clean energy sector. The bill, backed by former US President Donald Trump, proposes significant cuts to subsidies that have fueled growth in the American solar and renewable energy markets — directly impacting Indian exporters like Waaree Energies.
What Happened?
On Friday, shares of Premier Energies and Waaree Energies fell by up to 10% and 4.5% respectively, marking them as the biggest losers on the Nifty 500 index. This decline follows a sharp sell-off among their US peers like Sunrun (the largest US rooftop solar company) and NextEra Energy, which saw losses ranging from 7% to a staggering 37% in a single trading day.
The sharp fall in these stocks comes after the US House of Representatives narrowly passed a bill (215-214) aimed at repealing the Inflation Reduction Act’s incentives, including:
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Federal tax credits for rooftop solar installations (currently at 30%)
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Grants for reducing air pollution and greenhouse gases
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Subsidies for electric heavy-duty vehicles
The bill now moves to the US Senate for further consideration.
Why Does This Matter for Waaree Energies?
Waaree Energies is particularly exposed to the US market. As of Q1 FY26, Waaree’s order book stood near ₹47,000 crore, with 57% tied to US exports. The proposed tax changes could drastically reduce demand for large-scale solar projects and rooftop installations in the US — threatening a majority chunk of Waaree’s business.
Brokerage firm Jefferies warned that this shift “could meaningfully curtail utility-scale and rooftop installations,” and the “US export opportunity is narrowing earlier than anticipated,” putting pressure on Waaree’s growth outlook.
Premier Energies’ Position
Premier Energies shares also fell, despite the company having minimal export exposure. The overall market sentiment on clean energy stocks amid the US tax bill uncertainty was a key driver behind the stock’s decline.
What Lies Ahead for Clean Energy Stocks?
The tax bill represents a significant policy reversal in US clean energy support, which has been a tailwind for global solar firms. If passed by the Senate, Indian companies with US exposure like Waaree Energies may face headwinds, leading to lower order inflows and stock price volatility.
Investors should watch the Senate’s move closely and assess the impact on export-dependent clean energy firms.
Final Thoughts
The recent sell-off in Premier and Waaree Energies reflects broader concerns about US policy changes threatening renewable energy incentives. While the bill’s fate is uncertain, Indian solar stocks linked to US exports should brace for possible near-term volatility.
