Senate dealmakers scrapped excise tax on solar and wind projects, providing lifeline for solar stocks.

Solar stocks have suffered this year due to interest rates, bankruptcies, and political turmoil. The Invesco Solar ETF (TAN) is down, with major players like First Solar (FSLR), Enphase (ENPH), and Sunrun (RUN) trading deep in the red. Senate Republicans’ plan to phase out solar and wind tax credits by 2028 has further impacted the industry.

However, a recent twist in D.C. has given solar stocks a lifeline. Senate dealmakers scrapped an excise tax on solar and wind projects from the latest tax-and-spending bill, causing a surprise rebound in the market. While this move provided temporary relief, long-term tax credits are still set to phase out by 2028.

Despite the rebound, industry leaders remain cautious as the future of American clean energy hangs in the balance. The bill now heads to a House vote, which will shed more light on the fate of clean energy projects. Key solar stocks were in the green during regular trading, with TAN up over 6.2%, First Solar jumping almost 9%, and Sunrun rising nearly 3%.

Read more at Yahoo Finance: Solar stocks’ nightmare year just got a plot twist