The renewable energy industry is thriving under President Joe Biden and his ambitious administration, and the spotlight fell on wind and solar energy last week. Major new announcements from the Energy Department on energy targets resulted in gains for a number of solar stocks today.
One of the main promises of the Biden campaign to voters was the decarbonization of the US energy industry. After Biden’s second month in office, his administration announces the goal of decarbonizing the country’s energy by 2035. At the forefront of this goal is the $ 3 trillion infrastructure package intended in part for stimulate renewable energies.
The package will greatly complement the wind industry. The administration is rely on an increase in wind energy production by installing offshore wind farms. It also plans to complement the solar industry, and new projections for the energy sector are getting solar stock investors excited.
Solar stocks boosted by industry growth, reduced costs
The US Department of Energy announced last Thursday that it intends to reduce the cost of manufacturing solar energy by 60%. The cost of production in industry has benefited from the lower price plans of the past, including an 80% cost reduction compared to the energy plan of the last decade.
The plan to cut costs so much will allow the world to dramatically speed up its solar production. This is great news for fans of solar stocks, as the industry is already experiencing a huge period of growth. In fact, solar installations should see their greatest growth period in five years.
CSIQ action and others see growth
The price reduction plan and increased demand for solar power around the world are doing wonders for solar stocks on Tuesday. Canadian solar (NASDAQ:CSIQ) the share registers a gain of 8%, and investors turn around their recently bearish views on solar society.
Other companies are also making gains today. Renesola (NYSE:GROUND) the share is up 21%, Daqo (NYSE:QD) the share appreciated by 12%, and First solar (NASDAQ:FSLR) the share registers a gain of 5%. Now is the time to be bullish on the solar industry, as the Biden administration has laid out its intention for solar power and is currently taking steps to develop it.
At the time of publication, Brenden Rearick had (directly or indirectly) no position in any of the stocks mentioned in this article.