Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits

Sunrun (RUN), a leading residential solar company, saw its stock plunge nearly 40% following the U.S. Senate Finance Committee's proposed tax-and-spending bill, which aims to cut renewable energy incentives. The stock, which traded at $13.20 in late May, now hovers around $6, reflecting investor concerns over the company's profitability without government support.

The proposed cuts threaten Sunrun's third-party ownership (TPO) model, where homeowners lease solar panels instead of purchasing them outright. This model, popular for its low upfront costs, has driven Sunrun's growth but relies heavily on tax credits. Without these incentives, the company's path to profitability appears increasingly uncertain.

Market sentiment has turned sharply bearish, with analysts questioning Sunrun's ability to adapt. The solar sector at large faces headwinds as policymakers reconsider subsidies for renewable energy.