Last week on July 15, Senator Joe Manchin reportedly told Democrats he would not support new climate
spending. The economic package that includes this and tax increases is a blow to solar energy stocks.
Enphase (ENPH), First Solar (FSLR), SunPower (SPWR), and Array (ARRY) are notable decliners.
Manchin’s lack of support is necessary. The package would further stimulate the economy, accelerating
demand. This will increase inflation, contradicting the Federal Reserve’s policies. The Fed must increase
rates by at least 75 basis points to slow inflation.
The lack of support hurts climate-friendly initiatives. Solar panels are a good alternative to oil and gas.
Renewable energy would lessen America’s dependence on foreign oil, albeit slightly.
Politically, the government’s failure to pass a bill is troubling. The U.S. is not accomplishing anything. It is
too divided. This creates an opportunity for clean energy investors to consider solar energy stocks.
Array Technologies will give back its recent gains. After rallying back to the $14 level, or the 200-day
simple moving average, the company is in value territory. It trades at a forward P/E of around 12 times.
In the fourth quarter, ARRY stock rallied after beating estimates. It also issued upbeat guidance.