Inflation Reduction Act: Solar Stocks on the Move in 2023


The solar energy wave is upon us, and in many cases the benefits of this emerging technology are starting to be realized. The Guardian reports solar energy has helped the State of Texas avoid rolling blackouts amidst a brutal heat wave that has sent energy demand through the roof.

“The additional solar that we’ve had, I think has likely been determinative in making a difference between outages and not having outages,” said Doug Lewin, president of the Austin-based renewable power consulting firm Stoic Energy.

Elsewhere, solar power is gaining converts in areas like Frankfort, Kentucky where coal was once king, according to an AP News Report. The Biden Administration’s Inflation Reduction Act offers up to 30% discounts via tax credits for solar panel installation. For Heather Baggett’s family in Frankfort, it was a good deal.

“For us, it’s not politically motivated,” said Baggett. “It really came down to financially, it made sense.” (Source: AP News)

As you might expect, solar panel stocks are on the rise.

Let’s take a look at First Solar (FSLR)

Daily FSLR Chart (Source: Yahoo! Finance)

First Solar, a leader in solar panel production has seen their stock run up from $70 to a high of $231 over the past 12 months. That’s an impressive 240% increase in share price. And they’ve just inked a huge contract for a solar panel project in Alabama for the Tennessee Valley Authority (TVA).

Two Solar Companies also on the rise over the past 12 months are:

  • Array Technologies (ARRY) ran up from $14 to a high of $25 
  • Next Tracker (NXT) has risen from a low of $28 to a high of $45

But not all solar panel companies have enjoyed the meteoric growth enjoyed by First Solar.

  • Solar Edge (SEDG) has been range-bounc between $228 and $343 per share, and is currently trading at $260, near the bottom of its range in very choppy trading.
  • Enphase Energy (ENPH) is also flat, to slightly down. One year ago, it was trading at $269, and today it’s trading at $179.

There appears to be a sharp divide between companies on the rise in this space and companies that are treading water or faltering. 

Stay tuned to Global Investment Daily for periodic updates on solar energy.

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