Enphase Energy Stock Plummets 62% Amid Tax Credit Concerns

MENLO PARK, Calif. — Enphase Energy’s stock tumbled 16% in extended trading on June 16, 2025, following proposed changes to tax legislation by Senate Finance Committee Republicans. The changes aim to eliminate solar, wind, and energy tax credits by 2028, hitting the already troubled company hard.

This proposed shift in policy could not come at a worse time for Enphase, which faces significant challenges in the U.S. residential solar market. Rising interest rates have dulled consumer interest in solar installations. Furthermore, regulatory changes in California, the largest solar market in the nation, have drastically reduced net metering benefits, which undermines the appeal of residential solar systems.

“Consumers are now seeing less financial return on their solar investments due to these regulatory changes,” said a market analyst. “This could steer potential customers away from solar installations.”

The news also adds to a grim picture for the company, with Enphase’s stock falling 62% in the last twelve months. Its operating margin is 10.7%, which is below the broader S&P 500’s margin of 13.2%. This shortfall highlights operational inefficiencies that exist despite the company’s prominent position in solar energy solutions.

While some investors look for stability, Enphase stock has struggled during market corrections, indicating weak investor confidence. Despite this, the company maintains a higher valuation at 3.8 times its trailing twelve months revenue compared to 3.0 times for the S&P 500. This premium valuation raises concerns about a possible downturn as investors reassess the stock’s risk-reward profile.

As the intersection of policy hurdles and market saturation grows, Enphase Energy confronts an uncertain future. The proposed elimination of renewable energy tax credits introduces more long-term challenges in an already uncertain demand environment.