Solar stocks are taking a beating today, and we have several reasons why. Solar industry stocks are being slammed during today’s trade primarily because of action in Washington:
What do we mean?
Well Solar Stocks are seen as a terrible trade thanks to the tax bill passed by the U.S. Senate which contains provisions that could harm wind and solar energy investment and deployment. Therefore solar stocks are taking it on the chin.
The bill’s Base Erosion Anti-Abuse Tax, or BEAT, provision is intended to make it more difficult for businesses to avoid taxes but it also could make tax credits such as the renewable energy Production Tax Credit for wind power and the Investment Tax Credit for solar projects harder to monetize.
“If these provisions are retained, they will result in broad instability and uncertainty for businesses and investors across many sectors, including the clean energy sector,” says a statement signed by six groups including the American Council on Renewable Energy.
“The BEAT program, as currently drafted, would have a devastating impact on renewable-energy investment and deployment,” says another letter signed by four groups including the Solar Energy Industries Association.
Quad 7 Capital has maintained a SELL rating on solar stocks in 2017.
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