The Solar Stock Crisis Could be an Opportunity

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FILE PHOTO: A worker walks between solar panels at Centragrid power plant in Nyabira

Keep an eye on solar stocks.

At the moment:

  • Sunrun (RUN) is down about 14%
  • SunPower (SPWR) is down about 11%
  • First Solar (FSLR) is down about 3%
  • Enphase Energy (ENPH) is down 5.5%, or $11.75
  • Canadian Solar (CSIQ) is down about 6%

All after California proposed new rules for rooftop solar that could slow installations.

According to Bloomberg, “Residential solar customers would get lower credit for their excess electricity sent to the grid based on the value of the energy costs avoided by utilities, according to a proposed decision issued by the California Public Utilities Commission. In addition, rooftop solar users would have to pay a new grid-connection fee that would average $40 a month.”

Should it pass, not only could it wipe out a chunk of the solar market, it could undercut state climate goals and cost thousands of jobs.

The proposal “represents California politics at its worst and loses sight of what constituents want — innovation, control, and fast solutions — in favor of propping up failed and stodgy incumbents,” Sunrun’s Chairman Edward Fenster said, as also quoted by Bloomberg.

If California fails to push these proposals through, impacted solar stocks could regain a good deal of lost momentum.  Stay tuned for more on this developing story.