Waaree Energies Share Price Dips 2% Amid US Senate Proposal to Cut Renewable Incentives

Waaree Energies' share price declined over 2% on June 18, marking its second consecutive session of losses. The fall comes in response to a US Senate panel's draft bill that aims to phase out tax incentives for solar and wind energy by 2028.

Market Performance Snapshot

• Current drop: Over 2% on June 18
• 5-day decline: More than 5.5%
• Monthly drop: Close to 8%
• 1-year gain: Around 16%
• From 52-week high: Down by over 27% (from ₹3,743/share)
• From 52-week low: Up by nearly 46% (from ₹1,863/share)
• Trading volume: Over 7.5 lakh shares traded within the first hour on NSE

Main Trigger for Price Decline

The decline in Waaree Energies share price comes after a US Senate committee suggested:

• Cutting solar and wind energy tax credits to 60% by 2026
• Phasing out incentives entirely by 2028
• Contrast: Under current laws, the rollback was not to start before 2032

This proposal aligns with earlier suggestions made under the Trump administration's tax bill, although the Senate's version is more staggered.

In a related move, the Senate plan proposes:

• Granting 100% tax credit to hydropower, nuclear, and geothermal projects till 2033
• Then, reducing these benefits to 0% by 2036

Impact on the Global Solar Sector

Waaree Energies shares mirrored the sentiment on Wall Street:

• First Solar: Fell nearly 18%
• Solaredge Technologies: Dropped by 33%
• Sunrun (most significant US rooftop solar player): Slumped 40% in a single day

The broader reaction reflects global concern over the proposed rollback of incentives, especially among firms with notable exposure to the US market.

Company Operations & Exposure to the US Market

Waaree Energies has a significant footprint in the United States:

• Earlier this year, it began commercial production of solar modules at its Brookshire, Texas facility
• It became the first Indian renewable energy firm to set up a PV module manufacturing plant in the US

Given this expansion, changes in US tax policy will directly influence Waaree's international business strategy and could impact profit margins in the future.

Company Overview

• Sector: Renewable Energy (Solar)
• Global Operations: Includes significant presence in the US
• Recent Expansion: Commissioned solar module plant in Texas, USA
• Listed Exchange: NSE
• 52-week Range: ₹1,863 – ₹3,743

Summary

The Waaree Energies share price faced renewed pressure due to external policy developments in the US, a key international market for the company. The proposed rollback of renewable energy tax credits by the US Senate panel triggered market-wide selloffs in solar companies globally. With trading volumes remaining high and prices under stress, the market continues to react to potential shifts in the US clean energy landscape.