Solar stocks surge as Georgia election results raise hopes for Democratic-controlled Senate green energy program

0
Solar stocks are skyrocketing at news of a Democratic-controlled Senate.

Solar stocks are on the rise on Wednesday, as Georgia runoff election results raised hopes for a stronger green energy program.

Democrats appear poised to win both close races in Georgia, securing a slim majority in the US Senate, according to projections by Decision Desk HQ and Insider.

As a result, investors are crowding into the solar sector. Actions of SunPower climbed more than 15%. Enphase Energy Inc. stocks jumped more than 9%. JinkoSolar Holding Co., Ltd saw its shares increase by about 6%, and the shares of Sunworks, Inc. are up more than 14%.

Of course, the Invesco Solar ETF followed suit, up 7.5% on the day.

Even shares of First Solar were up over 6% today on high volume. The stock rallied despite a double downgrade by Goldman Sachs for the Tempe, Ariz.-Based company on Monday, which saw shares fall from more than $ 104 per share to just $ 91.66 per share at an all-time low. Tuesday.

It looks like Washington is on the verge of going green with a Democrat-controlled Senate, along with Joe Biden’s stated goal of a 100% clean network at the heart of his climate agenda. As the The Washington Post reported green energy lobbyists line up to influence the Biden administration.

And investors in solar stocks are paying attention.

The rally follows several positive reports on the sector from Goldman Sachs and JP Morgan.

JP Morgan analyst Paul Coster said in the company’s December Alternative Energy Outlook that “the falling cost per watt of renewables … positions wind and solar as the least energy source. expensive in around 70% of the world (BNEF estimate) ”.

“As low-cost batteries overlap with large-scale wind and solar, we are turning to carbon-free electricity to be competitive with fossil fuels as energy and distribution capacity,” said added Coster.

Supported by a strong investment banking outlook and a new Blue Senate, solar stocks could be on the verge of sustained gains.

Share.

Comments are closed.