Our theme on Solar Stocks – which includes solar panel manufacturers, systems installers, and component suppliers – has declined by about 1% year-to-date in 2023, almost in line with the S&P 500 which has remained roughly flat over the same period. Although the theme hasn’t fared too well, there have actually multiple positive developments for the sector.
The biggest tailwind for the solar industry comes from the Inflation Reduction Act, which was signed into law last August and carries about $370 billion in subsidies and credits for clean energy investment. The incentives have resulted in a considerable amount of new clean-energy project announcements. Moreover, fourth-quarter earnings from many solar players have been pretty strong. For instance, solar micro inverter maker Enphase Energy
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