The share price of Sunrun Inc. (NASDAQ:RUN) fell by over 37% on May 22, 2025, wiping off almost $1 billion of value for its shareholders. Let’s shed some light on the matter.
A field of solar panels glistening in the afternoon sun, symbolizing the company’s renewable energy ambitions.
Sunrun Inc. is America’s leading provider of clean energy as a subscription service, offering residential solar and energy storage with no upfront costs.
Sunrun Inc. suffered a major setback on May 22, 2025, after President Trump’s sweeping tax and spending bill advanced through the House of Representatives, effectively putting the brakes on a clean energy production boom in the United States spurred by subsidies enacted in 2022. The ‘one big beautiful bill’, now on its way to the Senate, is intended to end Biden-era tax credits for clean energy projects years sooner than planned, marking a significant blow for the country’s ballooning solar energy industry, which depends heavily on these tax credits to sustain itself.
The rooftop solar industry has been hit particularly hard, as the legislation terminates tax credits and eliminates their ‘transferability’ for installers like Sunrun Inc. that lease equipment to customers. As a result, the company’s entire business model is now under threat, since it generated over $700 million last year from transferring investment tax credits from its solar and storage projects. Moreover, it reported $117 million of ‘incentives revenue’ in 2024, which includes the tax credits, out of around $1.4 billion in total revenue for the year.
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