A quick glance at the markets shows that Monday has been a great day for solar energy stocks, with names like SolarCity (SCTY – Snapshot Report) and Canadian Solar (CSIQ – Analyst Report) up 12.4% and 5.15% respectively. First Solar (FSLR – Analyst Report) and even recently-struggling SunEdison (SUNE – Analyst Report) are also in the green today.
Today’s performance from this segment is brought on by two pieces of news. First of all, the agreement made over the weekend at the Paris Climate Conference ensures an increased demand for renewable energy sources in the near future.
(Also read: How Climate Deal Will Affect Markets)
With nearly 200 world governments agreeing to limit greenhouse gas emissions and move towards clean energy, the Paris deal is monumental. With private corporations also joining the fight, the renewable energy industry will have a plethora of new customers—some fueled by hefty subsidies—that will bring in big money.
One such example, which was announced at the conference, is the International Solar Alliance. The ISA will help private and public funds develop solar systems across the globe. This new initiative, although just one piece of a much larger deal, contributes to the sentiment that has solar stocks up big today.
The other factor moving solar stocks today is news coming out of the United States Congress. Because the Paris deal was carefully worded to become legally binding without Congressional approval, Congress is moving to counter the agreement with new rules of its own.
Apparently, conservative leaders plan to lift the 40-year ban on US crude oil exports. Democrats are willing to agree to the legislation, so long as the bill includes extensions of wind and solar tax credits. Needless to say, this also boosted solar stocks today.
Clean energy companies are going to be a big part of the future of Wall Street, and investors need to familiarize themselves with these stocks now. Check out our 5 Stocks to Buy on Historic Climate Change Deal today.
