Why is solar energy stock dropping

What happened to solar energy stocks?

Solar energy stocks have had a rough two-week stretch on the market, with companies like JinkoSolar ( JKS -2.47%) losing nearly one-third of its value and Canadian Solar ( CSIQ -0.29%) dropping over 20%. And Maxeon Solar Technologies ( MAXN 4.62%), SunPower ( SPWR 5.54%), and Enphase Energy ( ENPH 2.42%) have all fallen around 10%.

Are solar stocks falling again?

Solar stocks are falling again, but there are bright spots on the horizon. Solar energy stocks have had a rough two-week stretch on the market, with companies like JinkoSolar ( JKS -2.47%) losing nearly one-third of its value and Canadian Solar ( CSIQ -0.29%) dropping over 20%.

Why are investors selling solar stocks?

Why are investors selling solar (and hydrogen) stocks? The reasons renewable energy investors are frightened take multiple forms. Sunnova for example could be a huge loser if new Trump tariffs against solar panels imported from China take hold and strangle its supplies.

Will solar stocks fall if interest rates rise?

Solar projects are highly dependent on low interest rates for financing, so it should be no surprise that as investor fears about rising rates grow, solar stocks will fall. This week, we found out the Federal Reserve is prepared to "taper," or reduce the purchase of financial assets, later this year.

Are solar stocks gyrated based on rate changes?

Solar stocks in particular have gyrated based on rate changes all year, and this week, higher rates meant lower stock prices. A downgrade of NextEra Energy Partners by Seaport Global to sell with a $15.50 price target was a big shock to the market.

How will administration changes affect the solar energy industry?

Administration changes often bring changes to the renewable energy industry, but the direct impact is often unlike what investors expect. Over the last four years, multiple positive policies were passed, but many solar energy stocks struggled and some companies even went bankrupt.