Solar stocks have been pushing higher this week.
First Solar (SYM: FSLR), Sunrun (SYM: RUN), and even the Invesco Solar ETF (SYM: TAN) have seen strong buy interest this week. All after President Biden unveiled a $7 billion grant for solar power under the Inflation Reduction Act. Even better, FSLR, RUN, and TAN appear to have bottomed out and could push even higher.
“Under the Environmental Protection Agency’s Solar for All program, the administration announced funding awards to states territories, tribal governments, municipalities and nonprofits “to develop long-lasting solar programs that are targeted towards the communities and people who need them most,” EPA Deputy Admin. Janet McCabe said, as quoted by CNN.
“The solar grants are being awarded by the Environmental Protection Agency, which unveiled the 60 recipients. The projects are expected to eventually reduce emissions by the equivalent of 30 million metric tons of carbon dioxide and save households $350 million annually,” added the Associated Press.
Even better, some of the top solar names were just upgraded. Look at First Solar, for example. Earlier this month, Wells Fargo upgraded the solar giant to an overweight rating with a price target of $250, noting that FSLR’s panels are now sold out through 2026, which provides earnings stability.
“Wells Fargo’s Michael Blum also see several potential catalysts on the horizon, including the Biden Administration lifting the tariff exemption for bifacial modules, possible additional U.S. trade barriers on Chinese panels, and final Commerce Department regulations on AD/CVD that could introduce new CVD cases against southeast Asian countries beyond China,” added Seeking Alpha.
That being said, investors may want to use weakness in solar names as an opportunity.
