Solar energy stocks dropped sharply on Tuesday as the market digested cuts to renewable power tax credits in the Senate's version of the budget bill.

The Senate version of the bill includes a provision that would fully phase out both solar and wind power tax incentives by 2028. It does, however, keep incentives for nuclear, hydropower and geothermal energy for longer.

Solar stocks got hit hard on Tuesday after the Senate proposed to put an end to wind and solar incentives years earlier than scheduled. Shares of Sunrun (RUN), the largest US rooftop panel installer,