Shifting Energy Concerns Are Good New for Solar Provider Sunrun

RUN stock - Shifting Energy Concerns Are Good New for Solar Provider Sunrun

Source: Ajinkya Kolhe /

Enjoying tremendous social and political relevance, residential solar panel and home batteries provider Sunrun (NASDAQ:RUN) can now add military initiatives as a potentially positive catalyst. With the Russian invasion of Ukraine setting off a cataclysmic disruption of the modern global order, the consequence of the attack inherently has downwind implications for RUN stock.

On a broader level, most western countries are seeking ways to mitigate their dependency on Russian energy resources. As the Yale School of the Environment noted, the sudden global instability caused European leaders to push for a quicker transition to renewable energy implementation.

Significantly, Yale stated that the “European Union says it plans to triple its renewable energy capacity by 2030. Some critics even advocate that Germany suspend its plan to shut down its three remaining nuclear reactors by the end of this year — an unthinkable prospect before the invasion of Ukraine.” While such developments don’t directly tie in with RUN stock, the paradigm shift in mentality from fossil fuels to renewables is significant.

Second, as the crisis in eastern Europe drags on, inflation will likely be a massive headwind, both in the U.S. and throughout the world. In the U.S., the Federal Reserve was already facing a monumental task addressing the unprecedented expansion of the M2 money stock. Now, it must also consider the war in Ukraine, which is problematic primarily for the shelving of global oil supplies.

Arguably few appreciate that 65% of Russia’s territory is located in the permafrost zone. As climate change thaws the land, it poses severe challenges for the country’s energy infrastructure. Western companies typically would partner with the Russians on addressing these issues. But with them out of the picture due to international sanctions, a substantial volume of hydrocarbons could sit unused.

With more money chasing after fewer available resources, prices of almost everything will skyrocket. Thus, it’s quite possible that many people will turn to solar energy platforms to save on monthly utility costs, which may augur well for RUN stock.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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