Shares of solar energy companies rose Wednesday amid the possibility that Democrats will gain control of the Senate, increasing the chances of more government support for the solar industry.
Democrats will have a majority in the Senate if their two candidates win the runoff elections in Georgia. The Senate would be tied 50-50 between Republicans and Democrats, but Vice President Kamala Harris would hold the tie-breaking vote.
Democrat Raphael Warnock has been projected a winner over his GOP opponent Kelly Loeffler, while Democrat Jon Ossoff holds a slim lead over Republican David Perdue in the other runoff.
The largest solar energy exchange-traded fund, Invesco Solar ETF (TAN) - Get Report, recently traded at $112.70, up 6.25%. It has skyrocketed 237% in the last 12 months through Tuesday, amid growth in the industry and investor enthusiasm for alternative energy.
Among individual stocks, Enphase Energy (ENPH) - Get Report recently traded at $194.00, up 6.90%; SolarEdge Technologies (SEDG) - Get Report at $329.99, up 4.16%; Sunrun (RUN) - Get Report at $78.00, up 6.72%; and First Solar (FSLR) - Get Report at $99.00, up 7.42% .
Morningstar analyst Travis Miller likes solar-panel maker First Solar, but thinks it’s overvalued. “We are reaffirming our $63 fair value estimate, after First Solar announced a memorandum of understanding with the government of Tamil Nadu in India to site a new manufacturing facility,” Miller wrote last month. “We are reaffirming our no-moat and stable moat trend ratings.”
The company “now appears poised to add India to its list of core growth markets along with the United States and Europe,” he noted. “We continue to consider First Solar a high-quality option for investors who want to increase their renewable energy exposure.”