From pv magazine 04/2021
In the month of March, the solar industry underperformed in the market. The Invesco Solar ETF (TAN) decreased by 16.3%, while the S&P 500 and DJIA increased by 0.3% and 3.5%. The five stocks in the U.S. market that saw the largest losses were Daqo (-32.5%), Sunnova (-25.9%), Array (-25.2%), JinkoSolar (-18.3%), and ReneSola (-18.0%). The reasons given for the sell-down include the rising interest rate with the 10-year treasury up 20% from 14.5% at the beginning of March, as well as sector rotation and concerns about the proposal from California Investor Owned Utilities (IOU) to increase grid-access fees.
Although they’re on the rise, interest rates remain low and the Fed has also signaled that no interest rate hikes are to be expected for the next two years. In the past earnings season, most companies reported strong fundamentals and a healthy outlook. Moreover, there is a meaningful positive message from the Clean Future Act, which was introduced in the U.S. House of Representatives in March and aims to set a target to achieve net-zero greenhouse gas pollution by no later than 2050.
Roth hosted the 33rd Annual Conference from March 15-17, with more than 83 companies from across solar and renewables. The conference revealed that the United States electric grid has seen big growth in decentralized models and distributed power infrastructure, and residential solar installations are expected to grow by 25-30% in 2021 over 2020.
The announcement of the preliminary wind tower import tariffs are likely to slow imports in the near term. With regard to the ongoing forced labor issue in China, the AFL-CIO (American Federation of Labor and Congress of Industrial Organizations), the largest U.S. labor federation, is calling on the Biden administration and Congress to stop imports of solar energy products from China’s Xinjiang region over human rights concerns.
By Jesse Pichel
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