Solar Stocks Sink As Senator Manchin Refuses To Back Bill

On Friday, solar stocks declined after Senator Joe Manchin refused to support the legislation aimed at increasing spending for addressing the issue of climate change. This year, the solar industry has had to deal with plenty of headwinds, which include supply chain disruptions, policy uncertainty, and an increase in the cost of raw materials.

Invesco Solar ETF down

Aimed at tracking the industry, the Invesco Solar ETF saw a decline of 7% in the day but managed to recover some of the losses. However, it still ended the session on Friday lower by 2%. As far as the weekly decline is concerned, it stands at about 10%.

At one point, there was a more than 10% decline in Maxeon Solar, First Solar, Sunnova, and Sunrun. The group recently took a hit because of the areas out of the growth orientation because investors were assessing the impact of rising interest rates.

Stocks decline

Market analysts said that the decision of the US Senator would affect the ability of President Joe Biden in achieving his goal of a 50% reduction in greenhouse gas emissions by 2030. While the news might be disappointing, the switch towards renewable resources is still encouraged because of its economic rationale.

Last November, the Build Better Act from President Joe Biden had passed and it set aside more than $500 billion for spending on climate change issues. This included clean energy tax credits of about $320 billion. However, opposition from Senator Manchin meant that the bill was unable to clear the Senate.

The bill also included the extended version of the Investment Tax Credit, which is considered vital for the development of the industry. This year, there is a 26% tax incentive given for residential solar systems, but this is expected to drop to 24% next year and then expire in 2024. A permanent 10% will be charged in that year for commercial systems’ tax credit.


However, it was noted by some that Congress could still pass a slimmed-down version of the bill. The last time the credit had been extended was under the Trump administration back in 2020, as it had gotten bipartisan support.

Market experts said that this was not a good sign for clean and solar energy, but there could be an extension possible if some Republicans decide to jump in. This could happen in states where wind and solar have become prominent industries.

Sunnova is a residential rooftop installer and its chief executive, John Berger stated that solar presented the United States with a great economic opportunity. He also went on to say that the best thing about the industry was its anti-inflationary nature.

He said that they were making a lot of effort to come up with solutions to address the energy crisis. This included climate change, energy security as well as affordability. They can accomplish this goal by offering homeowners energy independence, especially considering the climate change problems that are becoming more evident.

Leave a Reply

Your email address will not be published.


What is Copy Trade and How It Works?

Copy Trade Intro Copy trade or copy trading is a type of trading in which one trader (the “follower”) automatically copies the trades of another trader (the “leader”). This is done through a copy trading platform, which connects the follower and leader and allows the follower to automatically copy the leader’s trades in real-time. How […]

Coins Capital Review, – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]