Solar stocks popped on Wednesday as projected Democratic victories in Georgia runoff elections boosted investors’ hopes for a more robust green energy agenda.
What Happened?
Shares in solar companies like SunPower soared over 15 percent, Enphase jumped over 10 percent, JinkoSolar saw its shares rise over 6 percent, and shares of Sunworks climbed over 14 percent.
This happened after the Democrats Raphael Warnock and Jon Ossoff won their races giving the party control of the Senate.
Why It Happened!
The Senate will be key to Democrats passing any renewable energy legislation like increased subsidies or funding for new technologies.
Project developers like First Solar, JinkoSolar, and ReneSola could all benefit if there are increased tax subsidies, like the two-year extension of the investment tax credit that was included in the recent stimulus package.
If there are any other packages passed it’s reasonable to assume that developers would benefit from them.
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