Renewable sector rises on breakthrough climate bill
Following an already strong week, renewable energy stocks jumped yesterday on the reveal of the “most ambitious climate spending package” in U.S. history.
What’s the big deal? In a surprising turn, Senator Joe Manchin is supporting a $369B spending package that includes energy and climate programs funding. The package will include:
- $10B in investment tax credits for electric vehicles, wind turbines and solar panel manufacturing.
- $27B for clean energy tech and $30B in loans and grants for electric utilities to shift towards clean energy.
Manchin — who holds a swing vote in the 50-50 Senate — previously said he wouldn’t support climate provisions without clarity on July inflation figures.
Renewables post strong gains: Upbeat earnings powered the renewable sector higher this week, and the bill gave an extra jolt to clean energy stocks yesterday:
- The iShares Global Clean Energy ETF (NASDAQ:ICLN) — which encompasses a wide range of solar, wind and other renewable companies, jumped 7%.
- American solar panel manufacturers and providers: First Solar (NASDAQ:FSLR) and Sunrun (NASDAQ:RUN) jumped 15% and 29%, respectively.
- Hydrogen and electric vehicle charging companies: Plug Power (NASDAQ:PLUG) and ChargePoint Holdings (NYSE:CHPT) rose 26% and 16%, respectively.
The bill was a big step forward but faces challenges as it still needs to pass the 50-50 Senate and the House.