Within a matter of hours yesterday, two major, unprecedented geopolitical decisions were made by two of the largest economies on Earth. And both underscored that now is the perfect time to look for solar stocks to buy.

Early in the day, U.S. President Joe Biden announced a ban on all Russian energy imports. This is an attempt to further isolate Russia from the global economy.

Hours later, Russian President Vladimir Putin — in a move seemingly aimed at one-upping the U.S. — signed a decree banning the export of certain raw materials until Dec. 31.

The net effect of both unprecedented rulings is that the U.S. won’t be buying and Russia won’t be selling any of its energy exports anytime soon.

Of course, that means higher oil, gas and, overall, energy costs. But it also means substantially higher solar stock prices.

Here’s why.

Solar Is the Way to Energy Independence

After news of the American ban on Russian oil hit the tape, solar stocks surged yesterday. And the rally comes on the heels of what was already a breakout across the whole sector.

Over the past month, solar stocks are now up, on average, more than 20%. Some solar stocks have risen 30% or 40%. By comparison, the S&P 500 is down more than 5% over the past month.

Why the huge breakout in solar stocks?

Because Russia’s invasion of Ukraine underscores the world’s need for energy independence. And clean energy offers the only viable pathway toward it.

To the first point, it’s inarguable that energy independence is the goal for every country. No government wants its energy supply to be reliant upon on another country. And that’s especially true if said country is Russia, who provides about 40% of Europe’s natural gas supply.

At the end of the day, every country wants to produce its own energy. It’s cheaper. It’s more reliable. It creates more jobs. And, perhaps most importantly, it’s safer.

Pushing Forward With Solar

Though, the question is, how do countries achieve energy independence?

By the very nature of fossil fuels, it’s impossible for every country to achieve it via oil and natural gas. That’s because those energy sources are non-renewable and only exist in certain areas on Earth. In some places, like Russia, fossil fuels are abundant. In others, they are not.

Therefore, a global energy infrastructure built on fossil fuels is one that will forever be mired in energy dependence. A select few countries — like Saudi Arabia and Russia — will supply most oil and natural gas to the world.

As evidenced by the current crisis in Ukraine — or the occupation of Iraq in the 2000s — that is a recipe for disaster. Perhaps more specifically, it’s a recipe for war.

However, the sun does shine pretty much everywhere on Earth. And the wind blows most places, too. Therefore, a global energy infrastructure built on top of solar, wind, and hydrogen power is entirely plausible. And it’s one that sets the stage for true energy independence.

That’s why solar stocks have been rallying big over the past month. Investors believe the war in Europe underscores the need for energy independence. And the only viable pathway there is through solar.

It’s also why, in our flagship investment research advisory Innovation Investor, we’re passing on oil stocks and buying solar stocks.

But energy independence isn’t the full story here. Energy affordability matters, too. And that’s where the sun is starting to shine very brightly on solar stocks (no pun intended).

Russian Ban Comes at a Perfect Time for Solar Stocks

The reality is that the U.S. ban on Russian oil imports could not come at a better time for the solar industry.

That’s because the ban-driven price spike only further emphasizes solar as the cheapest energy source on the planet!

Before the Russo-Ukrainian war broke out, solar costs had already dropped five-fold since 2010. Per estimates from Bloomberg New Energy Finance, the International Renewable Energy Agency, the International Energy Agency and others, solar energy costs dropped below fossil electricity costs in 2020.

Now oil costs are the on rise. And guess what? Solar costs are going to keep dropping.

That’s because solar energy has a significant learning curve. We learn how to more economically generate solar power based on our current operations. Therefore, the more solar capacity the world builds, the more the world learns how to economically produce that power. And the more solar costs drop.

That’s untrue for fossil fuels.

From 2010 to 2019, each doubling of installed solar capacity globally led to a 36% drop in solar prices. Solar, therefore, has a 36% learning rate. But over that same time frame, coal costs remained flat as capacity expanded, while nuclear costs rose.

Thanks to the hugely positive learning rate of solar and the negative-to-nonexistent learning rates of nonrenewables, the current global price spike in fossil fuels is guaranteed to be accompanied by a sustained drop in solar energy costs.

The result? Well, we’re already in a place where solar is cheaper than fossil fuels. But by the end of the year, that difference will be substantial — too substantial for anyone to ignore.

And that’s why we’re pounding the table on solar stocks today.

Huge Opportunity in Solar Stocks

Every crisis creates opportunity. This one is no different.

What’s happening in Eastern Europe is an absolute tragedy. While the war may seem far away, the impacts of the conflict will hit you at home, especially in the form of higher energy prices.

The national average gas price is above $4 per gallon. That’s a record high. And just wait until you get your energy bills this summer…

Folks, what we’re staring at today is a global energy crisis. Not a Russo-Ukrainian energy crisis — a global energy crisis that will impact you, me and everyone we know.

Well, except for those whose homes and offices are powered by solar. Their energy costs are going to go down — not up.

Wouldn’t you like to be one of those folks? Sure. So does everyone. And that’s why we are confident in saying that the oil and gas price spike of 2022 will spark enormous growth in the solar industry.

There has truly never been a better time to buy solar stocks that right now.

Smart money knows this already. That’s why solar stocks are surging, while the rest of the market has been crashing.

But you aren’t late to the party. We’re in the first inning of this ballgame. And the runway for further price appreciation in solar stocks remains extensive.

Gain access to the best solar stocks to buy today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.