Sunrun installers install solar panels on a residential rooftop terrace in California.
Source: Sunrun
Solar stocks fell on Friday after Senator Joe Manchin said he would not support increased spending to tackle climate change. NBC Newsquoted a Democrat who summarized the conversations.
The Invesco Solar ETF, which tracks the industry, at one point fell more than 7%. By 11:45 a.m. on Wall Street, some of those losses had recovered, with the fund’s last trading level 3.3% lower. During the week, the fund is down more than 10%. Sunrun, Sunnova, The first solar energy and Maxeon Solar There are times when more than 10% off.
The industry has faced a number of difficulties this year, including policy uncertainty, supply chain bottlenecks and rising raw material costs.
More recently, this group has been hit as the market pivots away from growth-oriented areas as investors gauge the impact of higher interest rates.
“Manchin’s decision undermines the ability of the United States to meet President Biden’s goal of reducing U.S. greenhouse gas emissions below 50 percent to 52 percent by 2030,” Cowen said Friday in a note. idea for customers. “Despite the disappointing news, the economic reasons for the shift to renewable energy are increasingly compelling and keep us always constructive on the team.”
President Joe Biden’s Better-than-Origin Building Act, Last Passed House Act Novemberspends more than $500 billion on climate spending, including some 320 billion dollars in clean energy tax credits. The plan failed to pass the Senate, after objections from Senator Manchin.
An extension of the Investment Tax Credit, which has been key to the industry’s growth, was included in the bill. Incentives for residential solar systems will drop from 26% this year to 22% next year, before expiring in 2024. That year, the tax credit for commercial systems will be at the rate. 10% forever.
But some noted that a cut provision could still be passed by Congress. The credit was last renewed in 2020 under the Trump administration, after it received bipartisan support.
“This is not good for solar and clean energy in general – but before everyone panics and runs for the exits… there may be some hope of an extension on an independent basis with a Some Republicans cross the aisle in states where solar and wind have become important industries,” Northland Capital Markets wrote in a note to clients.
