Jul. 6 at 10:03 PM
$NEOV The broad-based iShares Global Clean Energy ETF (ICLN), the US solar industry (TAN), and global renewable energy producers (RNRG) are all surging right now in spite of the rapid phase-out of clean energy tax credits.
It turns out that most clean energy (wind, solar, and battery storage) companies can tolerate the removal of subsidies, but they wouldn't tolerate the previously contemplated excise tax on renewables. Fortunately for this sector, that punitive excise tax was removed from the final bill.
My impression is that electricity is in such demand right now and for the foreseeable future that the end users are likely to foot the bill for the loss of the subsidies.
Then again, the bill does advantage domestic manufacturing, which should boost the fortunes of First Solar (FSLR). Plus, the bill keeps the tax credits for residential leases and power purchase agreements that benefit rooftop solar leasing companies like Sunrun (RUN).
