Its analyst Biju Perincheril said his upgrade was based on an outlook for buoyant growth in the residential sector and the correction of the sector in recent weeks.
The Invesco Solar ETF TAN slid 20% in the month through Thursday. It’s still up 58% over the past six months, however, amid enthusiasm for President Joe Biden’s support for renewable energy.
Enphase Energy recently traded at $153.50, up 3.38%, and SolarEdge recently traded at $2.75, up 3.19%. Enphase reported strong fourth-quarter earnings last month.
As for Perincheril, he said he expects U.S. solar capacity to increase by about 25 gigawatts over the next five years, an increase of 1 gigawatt from his January forecast, according to Bloomberg.
Shares of solar companies including SolarEdge and Enphase fell Tuesday after California’s three biggest utilities proposed changes in the state’s solar program.
The changes would bring higher connection charges and lower rebates for homeowners who put up solar panels.
The proposed changes came from PG&E (PCG) - Get Free Report, Edison International’s (EIX) - Get Free Report Southern California Edison and Sempra Energy’s (SRE) - Get Free Report San Diego Gas & Electric.
The utilities said they want to erase the “unfair and growing inequity” in state policy that has non-solar customers doling out about $3 billion more a year for electricity to subsidize solar customers, Bloomberg reported.
The solar industry’s response: “California is a solar state, but the utilities want to own the sun and keep it out of the hands of everyday people,” Bernadette Del Chiaro, executive director of the California Solar and Storage Association, said in a statement, according to Bloomberg.