It’s been a rough ride for clean energy investors recently, with that continuing today. 😓
Solar stocks extended their declines this week as the U.S. finalized a decision to impose import duties on solar panel makers who skirted tariffs on Chinese-made goods. The decision is aimed at boosting domestic manufacturing in the industry. However, with many solar companies relying on cheap overseas alternatives to buoy their margins, this represents another headwind. 🔻
Meanwhile, on the demand side, high-interest rates are pressuring consumer demand for these products. That’s because solar panels and projects are typically financed to avoid a large upfront cost. But with housing activity stalling and the cost of capital rising, the revenue side of the equation remains challenging for the industry. 💸
Rising costs and slowing revenue growth are not a great combo, so Solar ETF $TAN and other clean energy ETFs have lagged traditional Energy returns for the last two years. 🌩️
Clearly, the U.S. and developed countries around the globe are strongly advocating for and supporting clean energy efforts. However, investors in the space remain on the lookout for a clear catalyst to reverse the current selling pressure in these stocks. 🤷
