Hello all, I’m your dedicated solar expert and today, I want to share some latest updates and trends in the US solar industry. A few challenges faced by solar companies recently include financial and regulatory uncertainty coupled with rising module prices. These factors have affected project timelines domestically and also made US companies compete with an increasingly gray home market and fierce pricing from abroad.
In a surprising turn of events, according to Roth Capital Partners’ Jesse Pichel, the Invesco Solar exchange-traded fund (ETF) has underperformed compared to other stock indexes in April 2024. It witnessed a fall of 11%, exceeding the 4% decrease of prominent indexes like the S&P 500 and DJIA.
The top three performing solar-related stocks in the US this past April hailed from Atlantica Sustainable Infrastructure plc, First Solar, Inc., and Clearway Energy, Inc. In stark contrast, Maxeon Solar Technologies, Daqo New Energy Corp, and SunPower Corp, struggled with significant drops in their stock values.
If you’re specifically interested in residential solar stocks (involving solar panels for your home, for instance), they were down by 18% in April, following a 2% drop in the previous month. This marked a cumulative decline of 44% in 2024, affecting major companies like Enphase Energy Inc., SolarEdge Technologies., Sunnova Energy International Inc., and Sunrun Inc.
Similarly, utility scale solar equipment stocks (related to larger solar arrays for homes and commercial purposes) experienced a decrease, with major players like Array Technologies Inc., Shoals Technologies Group Inc., NEXTracker Inc., FTC Solar Inc., and First Solar Inc. seeing their stocks drop.
Meanwhile, independent power producers (IPPs) showcase a relatively better standing despite challenges from Emeren Group Ltd. and Altus Power, Inc.
Additionally, the US solar industry is currently navigating through a gray market for discounted Enphase products. This has sparked off due to large installers and emerging competition from other microinverter brands. Chinese manufacturers are aggressively pricing and financing utility scale battery storage, thereby creating new challenges for international firms.
However, it’s not all struggle and competition. There seems to be a surge in merger and acquisition activities within the IPP sector, which could potentially reshape this narrative.
But to succeed in these challenging times, solar companies must reassess their strategies and better adapt to market fluctuations and rising competition. By doing so, they can continue to strive towards a greener future, driven by solar power. And remember, whether it’s installing solar panels for your home or investing in a large-scale solar array for home or business use, it’s a step towards renewable energy adoption and a sustainable environment.
Stay tuned for more updates and feel free to drop any questions or comments below. Until next time, keep shining!
Original Articlehttps://pv-magazine-usa.com/2024/06/18/u-s-solar-stocks-slump/
