While the Senate proposal would eventually remove credits provided by the Biden administration’s Inflation Reduction Act, analysts at J.P. Morgan and Mizuho said the Senate version is better for shares of solar and other renewables companies than the version passed by the House of Representatives in late May.

The Senate version of the bill includes a provision that would fully phase out both solar and wind power tax incentives by 2028. It does, however, keep incentives for nuclear, hydropower and geothermal energy for longer.

Solar stocks slid after Senate Republicans detailed revisions to the House's tax-and-spending bill that included fully phasing out wind- and solar-tax credits. The Senate's plan would see credits phased out from 2026,