Shares of US solar companies fell sharply after Senate Republicans released a bill that would end clean energy tax credits earlier than expected, dashing hopes that major cuts passed by the House wouldn’t stick.

The committee's draft bill proposes cutting solar and wind incentives to 60% of their value in 2026 and ending them by 2028. Under current law, the phase-out will not begin until 2032. Analysts, however, remain skeptical of whether policymakers will pass the bill in its current form before Trump's self-imposed July 4 deadline.

Solar stocks slid after Senate Republicans detailed revisions to the House's tax-and-spending bill that included fully phasing out wind- and solar-tax credits. The Senate's plan would see credits phased out from 2026,