The White House just launched a “gold rush” for solar stocks


Looking for the best stocks to weather the current bear market – those that are expected to grow despite choppy macro conditions? Well, I have two words for you: solar stocks.

After the White House injected tons of political firepower into the US solar industry, those stocks skyrocketed yesterday.

But it’s not just a one-day phenomenon. On the contrary, thanks to President Biden’s decision, the stage is set for the solar industry the two best years in history.

Against this backdrop, solar stocks will soar regardless of the trend of the rest of the market.

That is why we’re stocking up on solar stocks at present. And if you want to beat this bear market and make big money amid the volatility, you should be too.

The solar industry was facing a big crisis in 2022

The day before yesterday, things weren’t looking good for the solar industry in 2022.

Last month, the International Energy Agency said new US solar development was poised to drop 7% this year. This would mark the industry’s first decline of the century. The guilty? Geopolitics.

In short, the industry realized long ago that it was much cheaper to manufacture solar panels in China than in the United States. So when the solar industry really went into “growth mode,” US project developers were buying all their panels from China.

US solar panel makers have complained. The US government has looked into the matter. In 2012, the Obama administration called China’s solar panel supply “dumping”. And the government has imposed big tariffs on Chinese solar panels.

But, instead of turning to American solar panels, project developers have turned to Southeast Asian solar panels. That’s because, unsurprisingly, it’s also cheaper to make solar panels in Southeast Asia than to make them in the United States.

Photovoltaic cells

For the past decade, this has been the norm. US solar project developers have sourced the bulk of their panels from Southeast Asia.

And American solar panel makers have started complaining again. For the most part, their complaints fell on deaf ears.

But in early 2022, a California-based solar panel maker convinced the U.S. Department of Commerce to investigate possible “tariff circumvention.” It is believed that Chinese solar panel makers are simply diverting their supply to Southeast Asia. From there it is shipped to the United States, creating a classic circumvention of US tariffs.

This investigation is ongoing. And frankly, it’s killing the solar industry in the United States.

If the Commerce Department finds sufficient evidence of circumvention, it could impose higher tariffs on Southeast Asian solar panels. And it could retroactively apply those tariffs to Southeast Asian solar panels imported in recent years. Fear of these significantly higher costs associated with the development of solar projects in the United States has hindered the growth of the industry in 2022.

But the White House just saved the solar industry. And now it looks like solar stocks are about to enter their best two-year period ever.

The White House just sparked a solar gold rush

We’ve been bullish on solar stocks since they fell on concerns about the Commerce Department’s tariff investigation.

We knew US President Joe Biden wouldn’t let the government hurt the solar industry.

And we were right.

Over the weekend, the White House said Commerce’s investigation would continue. But it is the guarantee that, whatever the result, there will be no new tariffs on Southeast Asian solar panels for at least the next 24 months.

It’s a huge gain for solar stocks. Specifically, there are two big positive implications here.

  1. All those solar projects that were on the sidelines due to fear of higher tariffs will now move into development.
  2. Since the White House guarantees that anything built in the next 24 months will have no additional rights, anyone who was considering developing a solar project in the United States will now be rushing to do so in 2022-23.

The result? We expect the solar industry to accelerate like never before in 2022-23, expanding at breakneck speed to record volumes. And since most solar projects have energy storage systems (ESS), we expect this industry to grow exponentially as well.

We have positioned our portfolios aggressively to take advantage of this “gold rush” by the purchase of energy storage and solar inventory.

The Last Word on Solar Stocks

Yesterday the solar industry underwent one of the biggest changes in its history. In fact, it may be the greatest he has ever known.

Within hours, the industry went from a struggle for growth to a prepared for its biggest expansion ever in 2022-23.

Most investors completely missed this critical change. We did not do it.

We have four energy storage and solar stocks in our flagship Innovation Investor model portfolio. And in the last month, we’re up nearly 60% on those stocks!

Innovation Investor Solar storage

That’s the good news. But it gets even better. We think the rally in these four countries is just beginning, especially in energy storage stocks!

In other words, we are in the first leg of a massive two-year rally in ESS and solar stocks.

And it’s a rally it’s not too late to plug into.

As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.


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