Sunrun faces potential stock decline amid mounting challenges

Sunrun, the leading residential solar installer in the U.S., has faced significant challenges recently, which have negatively impacted its market performance. As of July 14, 2025, the company has seen a 36% loss in its stock value over the previous year, leading to concerns about future profitability and viability. Changes in federal policies have accelerated the expiration of essential tax credits, particularly the 25D Residential Solar Credit and the 48E Investment Tax Credit. This adjustment limits Sunrun's ability to capitalize on these financial incentives, which has previously bolstered their growth. Additionally, a recent executive order has redefined what it means for a project to be 'under construction,' introducing compliance challenges that could further hinder operational capabilities. The imposition of tariffs on imported solar equipment has exacerbated the financial strain, affecting cost structures and profit margins significantly. These developments have raised concerns about Sunrun's ability to maintain competitive pricing in the face of increasing operational costs.