what happened
Shares in solar stocks had another great day on Tuesday, climbing a rising market and good news for the industry. Profits were widespread, but there were a few companies leading the industry today.
SunPower (NASDAQ: SPWR) increased by 18.2%, JinkoSolar Holding (NYSE: JKS) increased by 9.9%, and Enphase Energy (NASDAQ: ENPH) jumped by 7%, while developer Brookfield Renewable Partners (NYSE: BEP) rose to its peak 5%. The shares rose 17%, 9.5%, 5.2% and 4.8% from 3pm EDT.
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Approximately
The first company-specific news was about SunPower, which raised Piper Sandler analyst Kashy Harrison from $ 22 to $ 35 per share. The company’s rating remains overweight, and the analyst believes Elected President Joe Biden’s energy plan could continue to fuel solar supplies in the long run.
Treasury nominee secretary Janet Yellen also appeared before Congress today, urging lawmakers to “act big” in connection with an economic relief package. The comments on the stimulus are not only encouraged, but it seems to suggest that Yellen will strive to keep interest rates very low in the foreseeable future, which will help keep the financing of solar energy projects low.
A general trend over the past six months is the rising prices for solar supplies, with the hope that subsidies and stimulus payments under an Biden administration will increase, and that regulatory policy will be more favorable. This is the same trend we are seeing today – except this time the policies being discussed are a bit more concrete.
Now what
On days like today, the speculative range of the market has taken over the solar power industry and stocks are rising without much news. There are no earnings reports or large contract signings that cause growth and profitability. But sometimes big gains occur on days when the wind from before wind is higher.
What I will be more interested in is the policy that a Biden government can put in place to help the solar industry. Yellen will be one of the people helping to make policy, but there are many more questions that need to be answered about how regulators will adjust policies to benefit renewable energy – or whether they will push for more subsidies. At the moment, the market believes that the solar industry will be one of the biggest winners of the Biden presidency. Given the pressure on spending at the highest levels of government, it is difficult to argue that this will not be the case.