The residential solar sector looks to fight for its survival, as the Senate didn't significantly water down Trump's tax bill.

(Reuters) -U.S. solar stocks dropped in premarket trading on Tuesday after a Senate panel proposed a full phase-out of solar and wind energy tax credits by 2028, as part of changes suggested to President Donald Trump's sweeping tax-cut and spending bill.

While the Senate proposal would eventually remove credits provided by the Biden administration’s Inflation Reduction Act, analysts at J.P. Morgan and Mizuho said the Senate version is better for shares of solar and other renewables companies than the version passed by the House of Representatives in late May.