Sunrun installer to install solar panels on the roof of a California house.
Source: Sunrun
Friday’s solar energy stocks plunged after Senator Joe Manchin said he didn’t support rising spending to deal with climate change. NBC NewsQuoted a Democrat who was briefed about the conversation.
The Invesco Solar ETFTracking the industry, has temporarily dropped by more than 7%. By 1:40 pm on Wall Street, some of these losses had recovered and the fund’s last transaction was 2.6% lower. Over the past week, funds have fallen by more than 10%. Sanran, Sunnova, First solar When Maxeon Solar At some point everything fell by more than 10%.
The industry has tackled many headwinds this year, including policy uncertainty, supply chain bottlenecks, and rising raw material costs.
Recently, investors have evaluated the impact of high interest rates, which has hit the group in rotation from the growth-oriented areas of the market.
“Manchin’s decision undermines US’s ability to meet President Biden’s goal of reducing US greenhouse gas emissions by 50% to 52% from 2005 levels by 2030,” Cowen said on Friday. Said in a note to. “Despite the disappointing news, the economic basis for the transition to renewable energy is increasingly compelling and remains constructive towards the group.”
The original buildback better law of President Joe Biden finally passed in the House of Representatives NovemberAllocate more than $ 500 billion to climate spending, including some $ 320 billion Clean energy tax credit. The plan did not pass the Senate, in response to the opposition of Senator Manchin.
The bill included an extension of the investment tax credit, which is key to the development of the industry. Incentives for residential solar systems will drop from 26% this year to 22% next year and will expire in 2024. That year, the tax credit for commercial systems settles at a permanent 10%.
However, some have pointed out that streamlined provisions could still pass Congress. Credit was last extended under the Trump administration in 2020, after receiving bipartisan support.
“This is generally not suitable for solar or clean energy, but before everyone panics and runs towards the exit … the sun and wind will be important industries,” he said.
John Berger, CEO of residential rooftop installer Sunnova, said solar is a major economic opportunity for the United States and added that the industry is anti-inflationary.
“We are the three elements of the energy crisis (energy affordability) by providing unparalleled energy services that help homeowners gain true energy independence in the face of the reality of climate change. We are working hard to bring a solution (price, energy security, climate change), “he said.
