US solar stocks fell after Democratic Senator Joe Manchin rejected the Biden administration’s Build Back Better Act – a $1.75 trillion plan that includes sweeping clean energy initiatives.
The country’s largest residential solar installer, Sunrun, fell 12% before recovering some of its losses. Competitor SunPower fell nearly 10%, while First Solar and SolarEdge each lost more than 8%.
The bill includes tax credits for various renewable energy resources, as well as tax credits for power plants that use carbon capture technologies, energy storage and other clean energy projects . In total, the proposed bill would have included $550 billion dedicated to climate-related initiatives.
“If I can’t go home and explain it to the people of West Virginia, I can’t vote for him,” Manchin said in a “Fox News Sunday” interview. “I’ve tried everything humanly possible, I can’t do it. That’s a no.”
Her decision effectively condemns the centerpiece of President Biden’s economic agenda in its current iteration. All 50 Republican senators also voted down the bill, meaning all 50 senators on the Democratic side had to support it.