[Market Focus] Hanwha Solutions Plunges Over 5% on U.S. Senate's IRA Reduction Bill

On June 18, shares of Hanwha Solutions and other renewable energy-related stocks are showing a broad decline on the domestic stock market. This comes in the wake of reports that the U.S. Senate's proposed revision of the Inflation Reduction Act (IRA) includes a significant reduction in tax credits for renewable energy.

As of 9:48 a.m. on this day, Hanwha Solutions shares are trading at 31,250 won per share, down 5.73% from the previous session. Hanwha Solutions Preferred is also down 6.67%, trading at 25,200 won. HD Hyundai Energy Solutions and CS Wind are each showing declines of over 6%, and other solar and wind power-related stocks are also experiencing simultaneous weakness.

Previously, a draft called 'OBBB' submitted by the Senate Finance Committee, which is controlled by the Republican Party, included provisions to reduce tax credits for solar and wind power plants to 60% in 2026, 20% in 2027, and to abolish them entirely in 2028.

Although this is a softer approach compared to the original House bill, the direction remains the same in terms of reducing and phasing out tax credits, making it still unfavorable for renewable energy companies. Overnight in the New York stock market, related stocks such as Sunrun, SolarEdge Technologies, and First Solar also plunged by double digits following this news.

Ham Hyeongdo, a researcher at Shinhan Investment Corp., stated in a report on this day, "The U.S. Senate has decided to significantly reduce IRA tax benefits for renewable energy. A decline in the price competitiveness of renewable energy is inevitable." He also predicted that stock price volatility driven by policy risks will increase until July, when the final bill is expected to pass. However, he maintained his outlook that demand for renewable energy will rebound in 2026, regardless of the policy outcome.