Solar stocks jump after report that Biden administration will suspend tariffs

SunPower equipment technicians install P-Series solar panel manufacturing technology at its manufacturing plant in Hillsboro, Oregon, November 7, 2018. 

According to a report, the Biden administration will suspend tariffs on solar panels from several countries.

The Defense Production Act will be used by the president to promote domestic production. A Commerce Department investigation into Cambodia, Malaysia, Thailand and Vietnam has made it harder to import equipment.

Sunrun's shares jumped more than 12%, while Enphase Energy's shares jumped 9%. SolarEdge Technology increased in value. The technology company popped about 20%.

The announcement will be a positive for our coverage, particularly within the utility-scale solar market, which has faced uncertainty since the US Department of Commerce's AD/CVD investigation was launched in late-March.

The war in Europe has caused energy prices to go up around the world, and the tariffs have been criticized more recently. Biden announced a four-year extension of the tariffs in February of this year.

Solar stocks have fallen since last November. The sector has staged a rally recently. The solar fund gained more than 27% from its lows.

The run up in solar stocks was due to the belief that the federal government would support the industry. The Build Back Better bill would have included more clean energy spending.