Here is Why Sunrun (RUN) Nosedived This Week

The share price of Sunrun Inc. (NASDAQ:RUN) fell by 37.69% between May 20 and May 27, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let's shed some light on the development.

Sunrun Inc. (NASDAQ:RUN) is America’s leading provider of clean energy as a subscription service, offering residential solar and energy storage with no upfront costs.

The share price of Sunrun Inc. (NASDAQ:RUN) nosedived last week after the House of Representatives narrowly passed President Trump’s sweeping tax and spending bill, potentially ending Biden-era tax credits for clean energy projects years sooner than planned. The bill could deal a massive blow to the country’s solar energy industry, which depends heavily on these credits to sustain itself.

The already struggling rooftop solar industry has been hit particularly hard as the credits for rooftop solar and battery storage would end this year, if the bill also manages to pass through the Senate. Since around 70% of the rooftop solar industry now uses lease arrangements, the legislation could prove disastrous for companies like Sunrun Inc. (NASDAQ:RUN) that lease equipment to customers. Moreover, the bill eliminates the ‘transferability’ of tax credits for installers, which puts the whole business model of Sunrun under threat since the company generated over $700 million last year from transferring investment tax credits from its solar and storage projects.

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