Solar stocks jump as Georgia election results raise hopes for green energy agenda in Democrat-controlled Senate

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Solar stocks soar on news of a Democratic-controlled Senate.

Solar stocks are on a roll on Wednesday as Georgia’s election results raised hopes for a stronger green power program.

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

As a result, investors are flocking to the solar sector. SunPower shares soared more than 15%. Shares of Enphase Energy Inc. jumped more than 9%. JinkoSolar Holding Co., Ltd saw its shares rise about 6% and shares of Sunworks, Inc. rose more than 14%.

Of course, the Invesco Solar ETF followed suit with a rise of 7.5% on the day.

Even shares of First Solar rebounded more than 6% today on strong volume. The stock rallied despite a double downgrade from Goldman Sachs for the Tempe, Arizona-based company on Monday, which saw shares fall from more than $104 per share to just $91.66 per share at the low. of Tuesday.

It looks like Washington is on the verge of going green with a Democratic-controlled Senate, as well as Joe Biden’s stated goal of a 100% clean network at the heart of his climate program. As the The Washington Post reported green energy lobbyists are lining up to try to influence the Biden administration.

And investors in solar stocks are paying attention.

The rally follows multiple 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 energy source cheapest in about 70% of the world (BNEF estimate)”.

“As low-cost batteries overlap with large-scale wind and solar, we look to carbon-free electricity to compete with fossil fuels as dispatchable power and capacity,” Coster added. .

Supported by a strong outlook for investment banks and a new Blue Senate, solar stocks could be poised for sustainable gains.

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