The demand for energy had drastically reduced under the raging of the global COVID-19 pandemic in 2020, and almost all traditional energy-related industries had sustained deteriorating performance, followed by descending stock prices, though it was entirely opposite for new energy. The US solar stocks rose monumentally in 2020, and the stock prices of numerous solar industry chains were also multiplied.
The COVID-19 pandemic had impacted almost all industries, except the solar industry in US, as the stimulus package launched by the federal government of the US has extended the taxation of the solar industry by 2 years, which granted a substantial help for the US solar industry. On the other hand, Biden’s victory from the 2020 US presidential election had also provided reassurance to the market on solar stocks, since the triumphed candidate who is a major advocator of carbon reduction is bound to launch policies that are more favorable to the development of green energy.
On the other hand, investors are lacking in confidence in the traditional energy industry due to the stagnant oil prices in recent years, and the demand for petroleum has also reduced under the raging COVID-19 pandemic during 2020, which prompted a substantial transfer of funds from traditional energy to green energy that further ignited the growth of solar stocks. The multiple factors have resulted in record high or new heights in recent years for US solar cell manufacturers SunPower and First Solar, solar inverter suppliers Enphase Energy and SolarEdge, residential solar installation and leaser Sunrun, solar cell module and up/downstream component supplier ReneSolar, as well as large-scale solar developer Canadian Solar in stock prices at Nasdaq and New York Stock Exchange.
The stock price of SunPower was at roughly US$5 in early 2020, before surging to nearly US$50 at the end of the year, and is maintained at US$30 having entered 2021, which is a new high for the company since the plummeting at the financial crisis in 2008. The stock price of First Solar was at about US$57 in early 2020, before exceeding US$100 at the end of the year, and is maintained at around US$100 in 2021, which is also a new high for the company after its stock price plunged alongside the prices of solar modules in 2011.
The stock price of Enphase Energy had quietly risen from US$5 in early 2019 to approximately US$30 in early 2020, which equals a fivefold increase, and the figure had surged to US$175 at the end of 2020, which was also another fivefold elevation. Enphase Energy currently sits at a stock price of over US$200 in 2021. SolarEdge rose from US$35 in 2019 to over US$100 in 2020, and further exceeded US$300 during 2020, which is a twofold growth, and the figure climbed to around US$350 during January 2021. Sunrun had a stock price of roughly US$14 in early 2020 that had risen by 4 times to nearly US$70 by the end of the same year, and escalated to US$90 during January 2021. All three aforementioned companies are now at their record highs in terms of stock prices.
ReneSola had a record low stock price of around US$1.4 in early 2020, before surging to over US$11 at the end of 2020 from US$3.4 after the US presidential election concluded on November 6th, and surpassed US$20 having entered 2021, which is a new high since the end of 2013. Canadian Solar sat at a stock price of roughly US$22 in early 2020, and escalated to over US$50 at the end of the same year, before rising to over US$55 in mid-January 2020, which is another new high.
While these indicative solar companies enjoy multiplied stock prices, the S&P 500 energy index had declined in 2020, narrating a complete opposite story.
The supply chain issues encountered during the first half of 2020 have been completely resolved, and with the vigorous implementation of solar energy upon Biden’s tenure, the market anticipates an even more flourishing prospect for the US solar industry after 2021. The total revenue for the US solar industry had arrived at US$8.23 billion in 2020, and solar industry researcher IBISWorld estimates that the figure will rise to US$19.4 billion in 2026.
(Cover photo source: Unsplash)