For months we have been under the potential disaster scenario where solar tax credits were going to expire and end at the end of 2008. Despite the calls for energy independence and a move away from foreign oil, many believed that Congress would not renew the tax credits that are helping to foster domestic use of solar power. It seems that Congress may have realized how silly this expiration would have been and how much answering they might have had to come up with if it happened. The Senate has passed a bill that provides more than $17 billion in renewable tax incentives. Under the bill, the incentives would go through 2016. Below are the stocks showing major gains as a result:
- First Solar, Inc. (NASDAQ: FSLR) up almost 8% at $228.13,
- SunPower Corp. (NASDAQ: SPWR) up almost 8% at $94.34,
- Suntech Power (NYSE: STP) up over 8% at $43.72,
- Evergreen Solar Inc. (NASDAQ: ESLR) up over 10% at $6.35,
- Energy Conversion Devices Inc. (NASDAQ: ENER) up over 13% at $64.15,
- GT Solar International, Inc. (NASDAQ: SOLR) up 3.5% at $11.01.
As a reminder, these are the U.S. companies that stand to benefit themost. There are many Chinese solar stocks which are participating insympathy, but the real winners from this are the US-based companies.
Here is another reason this may be getting attention. Utilities haveaccess to the solar tax credit as well. On a quick review, it lookslike the wind credits will extend for another 12 months but that shouldbe extended next year as well.
Jon C. Ogg
September 24, 2008
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