Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., said they have reached a deal on the most ambitious climate spending package in US history.
$369 billion for clean energy is included in the inflation reduction act.
Heather Zichal, CEO of American Clean Power, said the clean energy industry just breathed a huge sigh of relief.
She said that this is an 11th hour reprieve for climate action and clean energy jobs.
The solar exchange traded fund added 9.6%. Sunrun and Sunnova increased in price. The company gained more than 12 percent. The two companies added more than 10%.
The group was lifted by a good start to earnings season. The company exceeded expectations during the second quarter.
The top-performing S&P 500 component is Enphase. Strong demand out of Europe helped the company post record revenue.
| TICKER | COMPANY | PRICE | %CHANGE | CHANGE |
|---|---|---|---|---|
| Solaredge Technologies Inc | 339.19 | 4.31 | 14.01 | |
| Sunnova Energy International Inc | 23.96 | 23 | 4.48 | |
| Enphase Energy Inc | 266.89 | 4.76 | 12.12 | |
| Maxeon Solar Technologies Ltd | 13.49 | 18.75 | 2.13 | |
| First Solar Inc | 90.22 | 17.53 | 13.46 | |
| Sunrun Inc | 28.87 | 21.35 | 5.08 |
Earlier this month, Sen. Manchin said he would oppose the climate spending in the reconciliation package.
Policy uncertainty is one of the hurdles faced by the solar industry. Operations have been impacted by supply chain issues.
A 10-year extension of clean energy tax incentives is included in the bill. The Investment Tax Credit was last renewed in 2020. At the end of the year, it was going to go down.
Incentives for domestic manufacturing are included in the package. First Solar and Maxeon Solar's shares increased in value.
The funding includes provisions for electric vehicles, hydrogen and nuclear power.
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