The renewable energy industry is prospering under President Joe Biden and his ambitious administration, and the spotlight has fallen on wind and solar energies in the past week. The Department of Energy’s new major announcements for energy goals have resulted in gains for a number of solar stocks today.
One of the Biden campaign’s top promises to voters was the decarbonization of the United States energy industry. After Biden’s second month in office, his administration is announcing the goal of decarbonizing the country’s energy by 2035. At the forefront of this goal is the $3 trillion infrastructure package meant in part to spur on renewable energy.
The package will supplement the wind industry greatly. The administration is leaning hard on an increase in wind energy production through the installation of offshore wind farms. It also plans on supplementing the solar industry, and new projections for the energy sector are exciting solar stock investors.
Solar Stocks Boosted by Industry Growth, Lowered Costs
The U.S. Department of Energy announced last Thursday its intent to slash the cost of solar manufacturing by 60%. The cost of production in the industry has benefitted from price-lowering plans of the past, including an 80% cost reduction from last decade’s energy plan.
The plan to reduce costs this much will allow the world to greatly expedite its solar production. This is great news for solar stocks fans, as the industry is already under a huge period of growth. In fact, solar installations are projected to see their largest period of growth in five years.
CSIQ Stock and Others Seeing Growth
The price reduction plan and the increased demand for solar energy worldwide is doing wonders for solar stocks on Tuesday. Canadian Solar (NASDAQ:CSIQ) stock is seeing a gain of 8%, and investors are turning around their recently bearish opinions on the solar company.
Other companies are seeing gains today as well. ReneSola (NYSE:SOL) stock is up a whopping 21%, Daqo (NYSE:DQ) stock has appreciated by 12%, and First Solar (NASDAQ:FSLR) stock is seeing a 5% gain. It is time now to be bullish on the solar industry, as the Biden administration has laid out its intent for solar energy and is actually making moves to grow it.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.