What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) fell 7.2% in the afternoon session after President Donald Trump announced his administration would not approve new solar or wind power projects, causing a sell-off in the renewable energy sector.
The move came after President Donald Trump posted on his social media platform, Truth Social, that "We will not approve wind or farmer destroying Solar," adding, "The days of stupidity are over in the USA!!!" This statement escalated his campaign against renewable energy development. The remarks prompted a sector-wide sell-off, pressuring solar and wind stocks broadly. Other renewable energy companies also saw their shares plummet following the announcement, reflecting investor concern over the future of green energy projects under his administration.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.
What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 4.9% on the news that the U.S. Treasury Department released new guidance on clean energy tax credits that was less restrictive than investors had feared, sparking a rally across the solar sector.
The U.S. Treasury Department released new guidance on eligibility requirements for federal clean energy tax credits which proved to be less restrictive than the industry had anticipated. The new rules impact how projects qualify for tax credits, eliminating a key provision for larger projects. Specifically, projects over 1.5 megawatts can no longer qualify by simply spending 5% of the project's cost. However, this change does not apply to smaller installations, such as residential rooftop solar, which is a key market for SolarEdge. This preservation of the existing "safe harbor" rule for its core business segment removed significant uncertainty for the company. The positive regulatory news was compounded by a recent report of strong second-quarter sales and an announced partnership to deploy electric vehicle charging points in Europe.
SolarEdge is up 102% since the beginning of the year, and at $29.93 per share, it is trading close to its 52-week high of $32.06 from August 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $140.35.
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