Solar Stocks Jump On Qcells Investment

Solar stocks felt warmth Wednesday after South Korea-based Qcells announced it would spend $2.5 billion on a major expansion of its solar manufacturing facility in the US state of Georgia.


Solar stocks on the rise include: first solar (FSLR), solaredge technologies (SEDG), Shoals Technologies (SHLS) and array technology (ARRY).

Qcells investment is the largest solar investment in U.S. history, according to President Joe Biden’s statement

“This will restore our supply chain and make us independent of other countries,” Biden said. “It will help us reduce the cost of clean energy and fight the climate change crisis. It will also enable us to reliably manufacture cutting-edge solar technology at home. A win for our climate.”

Solar stocks that surged included SolarEdge, which rose 6.8% to 304.85 during afternoon trading on the stock market today. Shoals Technologies he rose 5.5% to 25.20. Alley he rose 6.3% to 21.90. First Solar rose 1% to a new all-time high.

Qcells said it is investing in solar power to take advantage of tax credits and other benefits under the Inflation Reduction Act signed into law by President Joe Biden last summer.

Solar Stock: Using Tax Credits

Overall, the law will put $369 billion into expanding renewable energy over the next decade. This includes long-term tax credits that are far superior to anything in the past. Equally important is reducing the nation’s dependence on China, a major supplier of solar panels.

The legislation also includes approximately $30 billion in production tax credits. The credits are intended to accelerate the production of solar panels, wind turbines and batteries.

Qcells, a subsidiary of South Korea-based Hanwha Qcells, said the investment will allow it to expand its daily output of 12,000 solar panels to 60,000. Qcells’ expansion is projected to supply about 30% of the total US demand for solar panels. The company opened his first solar panel manufacturing plant in Cartersville, Georgia in 2019. Cartersville is about an hour’s drive from Atlanta.

“As we lead the industry towards fully American-made clean energy solutions, we are further expanding our investments in low-carbon solar,” Qcells CEO Justin Lee said in a statement. rice field.

sun power Another solar stock rising in the news (SPWR) rose 5.7% to 18.40.

Follow Brian Deagon on Twitter. @IBD_BDeagon Learn more about technology stocks, analytics and financial markets.

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