Overnight, solar stocks decline as Trump takes a lead in election results.

• Clean energy investors are concerned that Donald Trump's potential victory in the U.S. presidential election may negatively impact solar stocks.
• If Republicans gain unified control of government, traders are concerned that Trump may repeal the Inflation Reduction Act, causing worry.
• The Invesco Solar ETF was off by 7% in trading on Robinhood.

Overnight, solar stocks experienced a sell-off as investors anticipate a Donald Trump victory in the U.S. presidential election.

The decline in solar stocks is due to concerns that a Trump victory may negatively impact the Inflation Reduction Act, which has driven the growth of clean energy in the U.S. through tax incentives for solar energy expansion.

Overnight trading on brokerage Robinhood saw a 7% decline in the benchmark. The solar panel manufacturer experienced an 8% drop, while residential solar stocks fell 6% and 2.6%, respectively. Inverter manufacturers also suffered, with a 5% decline and a near 5% drop.

Trump's campaign platform advocates for the abolition of the IRA, which he labels as the "Socialist Green New Deal." The IRA is one of President Biden's notable accomplishments. The bill was passed by a party-line vote in 2022 without any Republican backing.

If Trump wins the White House and Republicans control Congress, the future of the IRA will depend on it.

An email from Jen O'Malley Dillon, campaign chair for Kamala Harris, informed staff on Tuesday that the vice president's best chance of victory lies in Pennsylvania, Michigan, and Wisconsin, commonly known as the Blue Wall states.