Solar stocks jump as Georgia election results lift hopes for a green energy agenda in Democrat-controlled Senate
Solar stocks are on a roll across the board Wednesday as the Georgia runoff election results have lifted hopes for a more robust green energy agenda.
Democrats look set to win both tight races in Georgia, securing a slim majority in the US Senate, according to projections by Decision Desk HQ and Insider.
Investors are piling into the solar sector as a result. Shares of SunPower soared over 15%. Enphase Energy Inc. shares jumped over 9%. JinkoSolar Holding Co., Ltd saw its shares rise some 6%, and shares of Sunworks, Inc. are up over 14%.
Of course, the Invesco Solar ETF is following suit up 7.5% on the day.
Even shares of First Solar rallied over 6% today on strong volume. The stock rallied despite a Goldman Sachs double-downgrade for the Tempe, Arizona-based company on Monday, which saw shares fall from over $104 per share to just $91.66 per share at Tuesday’s lows.
It seems Washington is set to go green with a Democrat-controlled Senate, plus Joe Biden’s stated goal of a 100% clean grid at the core of his climate agenda. As the Washington Post reported green energy lobbyists are lining up for their shot to influence the Biden Administration.
And investors in solar stocks are paying attention.
The rally comes on the back of multiple positive reports on the sector from the likes of 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 renewable energy…positions wind and solar as the lowest-cost source of energy in approximately 70% of the world (BNEF estimate).”
“As low-cost batteries layer into utility-scale wind and solar, we look to zero-carbon electricity to be competitive with fossil fuels as both energy and dispatchable capacity,” Coster added.
Bolstered by strong investment bank outlooks, and a newly Blue Senate, solar stocks could be poised for sustained gains.