RBC Capital Markets sees Senate bill passage having mixed impact on solar stocks

RBC Capital Markets sees passage of the updated "big beautiful bill" in the U.S. Senate has mixed implications for solar-linked clean energy stocks

Brokerage says Senate's final version has a negative impact on solar demand with the more restrictive "placed into service" requirements for investment tax credits (ITC) and production tax credits (PTC)

Adds that language restricting credits for residential solar lease arrangements was removed and has positive implications for Enphase Energy ENPH.O, SunRun RUN.O, and SolarEdge Technologies SEDG.O

Brokerage believes investor expectations were biased towards the possible removal of the solar leasing restriction but not for changes to the timing of phaseouts from the initial proposal

"We continue to view utility-scale solar (Array Technologies ARRY.O, Fluence Energy FLNC.O, First Solar FSLR.O, Nextracker NXT.O, and Shoals Technologies SHLS.O) as relatively less impacted given strong energy demand and solar's relative cost competitiveness," - RBC analyst Christopher Dendrinos