New Delhi: Stocks of energy companies Waaree Energies and Premier Energies have crashed by about 8% and 4% on Friday respectively. The stock of Waree Energies is trading at Rs 2735, tanking from as high as Rs 2996 during the month of May itself, significantly eroding its market cap to Rs 86000 crore.

Similarly, Premier Energy, too, faced the brunt of the proposed Bill of US President Donal Trump and its shares are down around 4% from yesterday’s closing of Rs 1089. The shares are currently trading at Rs 1056. The market cap of the company stood at Rs 49000 crores.

Donald Trump’s Bill on renewable enery firms

President Trump has proposed a new tax bill that is expected to remove the grants and federal tax credits to the green energy companies. The proposed bill aims to amend the “Inflation Reduction Act”. The bill has passed in the House of Representatives. It is slated to be in the US Senate for further passing. The US has enacted the Energy Emergency Act, which gives the president enormous powers to act on the country’s energy needs, including cutting subsidies to the renewable energy sector.

Subsidy cuts

The proposed bill has created a panic among the green energy companies, as they are fearing tax cuts and grants that propel them to export their products to overseas markets. According to the bill, there would be a 30% subsidy cut given to the rooftop customers. The news is a shocker for US clean energy companies, as it would significantly drop the project development and manufacturing in the clean and green energy sector. The sector is estimated to have employed around 3.5 million employees, and the proposed changes in the Inflation Reduction Act would significantly harm employment, fearing loss of jobs and slow exports to the overseas export market. The US renewable energy market size is projected to reach $158.82 billion by 2032.