Solar energy stocks plunged by over 20% as the U.S. House passed a bill cutting clean energy subsidies unexpectedly.
Companies like Emphase Energy, NextEra Energy, AES, First Solar, Array Technologies, and Sunrun are affected by the removal of subsidies.
The subsidies were part of the Biden Administration's Inflation Reduction Act; eliminating them will impact solar rooftop solutions and electric vehicle stocks.
Investors are advised to steer clear of the solar energy sector for now due to the policy changes and potential impact on stock prices.