Shares of solar and renewable energy companies in the U.S. and Europe fell sharply Tuesday following a Senate Republican bill that would accelerate the phase-out of tax credits for wind and solar projects, disappointing clean energy supporters who had hoped for more generous relief than the House’s earlier cuts.

In U.S. markets, Sunrun (NASDAQ:RUN) plunged nearly 25% in premarket trading, while SolarEdge Technologies (NASDAQ:SEDG) and Enphase Energy (NASDAQ:ENPH) dropped around 20% and 15%, respectively. European renewable names also declined, with Orsted (LSE:10CF) down 1.2%, Nordex (TG:NDX1) slipping about 1%, and RWE (TG:RWE) losing 1.3%.

The Senate’s plan removes a strict 60-day construction start requirement but still calls for wind and solar tax credits to end in 2028. In contrast, incentives for nuclear, hydropower, and geothermal energy would remain available until a phased termination in 2036.

This legislation is part of President Donald Trump’s broader economic agenda, which rolls back several provisions of the Inflation Reduction Act. Notably, the $7,500 electric vehicle tax credit would be eliminated 180 days after the bill’s enactment, rather than waiting until year-end as the House version stipulates.

The Senate bill also eliminates the hydrogen production tax credit—valued at up to $3 per kilogram—despite heavy lobbying by companies like Plug Power (NASDAQ:PLUG) and various industry groups.

Additionally, the proposal removes incentives for both leased and owned rooftop solar installations, a change that experts warn could inflict serious harm on the already struggling solar market. This ongoing policy uncertainty has contributed to the bankruptcy of Solar Mosaic, a prominent home solar financing firm.

Unlike the House proposal, the Senate bill preserves nuclear energy tax credits by removing an impractical 2028 construction deadline.

Lawmakers aim to pass the Senate version and send it back to the House for final approval before the July 4 recess, though amendments may still occur.

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