This is What You Need to Know About the Comeback of Solar Stocks

Last Updated: 19. Dezember 2023By

For over a year, most solar stocks have only been going one way: down. Many stocks in the industry have had to endure extreme losses. For example, Sunrun, the former high-flyer, has dropped from its peak of over $100 to below $9, down a staggering 90%.

The future prospects of the industry remain excellent, however: after all, solar energy is booming worldwide. Renewable energy is essential for the energy transition, and solar plays a decisive role.

Demand slump and overcapacity due to rising interest rates The main reason for the industry’s woes has been the rising interest rates. Solar installations are often financed or included in the construction of a new house, for which loans are also required. If, due to high interest rates, unnecessary components have to be omitted in the new construction, the solar installation is often on the chopping block. In addition, incentives for the purchase of new solar panels were reduced in California.

All this has led to a slowdown in demand for solar installations, overcapacity in the industry, and high inventories. However, as mentioned before, this does not change the fact that renewable energy is a strong megatrend and the solar industry has excellent prospects in the coming years. Therefore, reaching the interest rate peak could also be a turning point for the industry and offer you excellent entry opportunities into solar stocks.

These stocks are interesting for the solar transition The companies agree. John Berger, CEO of Sunnova, recently said in an interview with Bloomberg TV that the industry had seen the worst of it.

These solar stocks are worth a look now:
SolarEdge Enphase Energy Sunrun Sunpower Sunnova Energy First Solar SMA Solar.