Our theme of Solar Inventory – which includes solar panel makers, system installers and component suppliers – is down about 11% year-to-date, faring better than the broader S&P 500 which remains down around 19% over the same period. While growth stocks, in general, have been hurt by aggressive Fed rate hikes and a broader market pivot toward value stocks, solar stocks are holding up better for several reasons. First, oil and gas prices soared after Russia invaded Ukraine. There are also growing uncertainties regarding the supply of natural gas in regions such as Europe, which depends on Russian gas for electricity generation. This appears to be giving a boost to renewable energy projects, with prices for power purchase agreements from solar projects skyrocketing. Some regulatory developments in the United States have also helped solar players. In early June, the White House announced that it would not impose new tariffs on imports of solar products for two years, as the government recently agreed to lift tariffs on Canadian solar products. Removing these trade barriers could also help drive growth by controlling prices for customers. Separately, China, which is a big solar market, is apparently considering a $220 billion stimulus package to boost its economy.
In our theme, Enphase Energy
, a company that sells solar microinverters, power generation monitoring software and battery energy storage products, was the top performer, its stock gaining nearly 12% since the start of the year. the year. On another side, Sun Powera company specializing in solar panels for residential applications, was the worst performer, with its inventory down almost 22% since the start of the year.
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