Shares of solar PV module manufacturer Waaree Energies are lower by over 8 percent in early trade on May 23, fearing a big dent to its export revenue after the US House of Representatives advanced President Trump's tax and spending bill, setting the stage for an end to many subsidies for the renewable power sector.
The management fears a potential slowdown in demand if these incentives are lowered.
Trump's 'big, beautiful bill' proposes to repeal grants for reduce air pollution and greenhouse gas emissions or purchase electric commercial vehicles, as well as removal of 30% tax credit for installing solar rooftop systems. Starting 2029, clean electricity tax credits for sourcing wind and solar power will be ended, according to the US bill.
The legislation will now go to the Senate for a final approval, unless the clean energy incentives are reversed.
One of the key consumer tax credit proposals offered up to $7,500 for the purchase of an electric vehicle, which would be fully eliminated by the end of 2026. The bill proposes that only manufacturers that have sold fewer than 200,000 EVs by the end of this year would be eligible to receive it next year. Tax incentives to purchase commercial EVs too would be repealed.
Waaree's 17-20 percent revenue is US bound, and the management had guided for it to to likely in the same proportion going forward. "...we might have a situation where there are several customers in the US are demanding modules, and therefore you might have a variation. But on a yearly basis or on a long-term averages basis, you will find that range bound between 17% to 22% in that zone for sales through the years," Waaree's CEO Amit Paithankar had said in April 2025.
The company also has a manufacturing facility in the US, and the company was considering a review how much it would manufacture in America. For FY26, Waaree is 'fairly confident' of achieving the EBITDA guidance of Rs 5,500-6,000 crore.
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