Why Are Solar Stocks Up Today?

Solar stocks are on the climb today alongside wider market indices. Indeed, the likes of SunPower (NASDAQ:SPWR), Enphase (NASDAQ:ENPH), and First Solar (NASDAQ:FSLR) are enjoying gains of between 7% and 12% heading into late-day trading.

It seems a new deal between Energix Renewables and First Solar is behind today’s jump. Indeed, this morning, First Solar announced an agreement with Energix, a Israel-based renewable energy company, to purchase 5 gigawatts of First Solar’s ultra-low carbon thin film solar modules.

First Solar expects to deliver the modules between 2026 and 2030. Energix then intends to use them in several of its projects between Israel, Poland and the U.S.

Energix is one of Israel’s largest renewable energy companies, with more than 7 gigawatts worth of projects currently under development. As such, today’s news is a big win for both First Solar, Energix, and solar stocks as a whole. Energix CEO Asa (Asi) Levinger said:

“As we grow our pipeline, we want a trusted partner that will not compromise on quality, its commitments, or principles, and that partner is First Solar. This deal, our largest ever, strongly reflects the long-term strategic partnership we share with First Solar. It also constitutes a significant milestone for Energix’s long-term growth, as we rapidly expand our global pipeline, with an emphasis on the United States. With shared goals and a united vision for a sustainable energy future, this deal perfectly suits our needs, paving the way for groundbreaking achievements and reinforcing our commitment to our stakeholders.”

Solar Stocks Climb on Energix-First Solar Deal

First Solar’s Chief Commercial Officer Georges Antoun had similarly optimistic words for the new deal:

“This deal demonstrates once again the substantial place Energix takes as one of our biggest client worldwide, and we feel honorable to take active part in Energix’s significant growth, especially in the United States. We are pleased that Energix will power its asset portfolio with First Solar’s module technology. This is another example of a large, sophisticated player choosing to de-risk its development portfolio by working with us. They recognize that they do not simply get a high-quality, high-performance, responsibly-produced PV module, but a trusted partner and long-term pricing and supply certainty, which are rarities in the solar industry.”

This is likely the story behind today’s solar stocks surge.

Despite today’s strong gains for solar stocks, the year hasn’t been uniformly kind to the industry. While FSLR is up 42% year to date, other companies, like Enphase and SunPower are down this year, 25% and 34%, respectively.

Whether today’s news proves a catalyst for a mid-year solar turn around remains to be seen.

On the date of publication, Shrey Dua did not hold (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 InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

x Logo: Shield Security
This Site Is Protected By
Shield Security