Green energy stocks are sharply on the upside and one major political event is causing that burst. Sen. Joe Manchin agreed to back a roughly $370 billion climate and energy spending package that would include tax credits for electric vehicles, renewable energy projects, and clean hydrogen.
Among hydrogen stocks, Plug Power is a leader rising nearly 25% since Thursday’s market open thanks to the news of Democrats reaching an agreement on the key legislation. Plug Power stock reached a high of $21.86 – a level last seen at the beginning of May 2022.
The funding might help Plug and other hydrogen stocks with additional investments in infrastructure development to place America on a green energy transition pathway. Other hydrogen stocks that soared are Fuelcell Energy which spiked 21% to reach $4.07 before retreating from those gains.
Bloom Energy gained 29% on Thursday but then pulled back to close the session at $20.17. Nikola stock advanced 7.7% on Thursday boosted by the optimism of the government prioritizing clean energy in times of rapidly rising inflation. Carbon capture company Aker Carbon Capture also advanced more than 5% on the news.
Renewable energy shares, especially solar were lifted as they are particularly sensitive to changes like tax credits and incentives.
Enphase Energy, Inc. (NASDAQ: ENPH) sky-rocketed around 34% in the last two days. Apart from the green energy investment boost, they also reacted to the company reporting impressive second-quarter earnings results and growth metrics.
The solar company reported revenue in Europe rising 69% mostly on the back of Russia’s decision to reduce natural gas shipments and many countries seeking out alternative energy sources. According to CEO Badri Kothandaraman, international sales could comprise 50% of Enphase’s total revenue in the coming years because of this development – up from 20% today.
First Solar stock gained a whopping 22% since Thursday, initiating what could be the beginning of a massive bullish trend for the shares for the medium term.
The Senate deal that was announced late Wednesday came as a surprise to clean-energy analysts who were disappointed the last time Manchin said he will not support the bill. Green energy stocks were additionally stifled this year by inflation worries, overall stock market bear trend, and supply-chain disruptions.
What the green energy market will be following next is the vote in the Senate next week on this new legislation. As long as it passes, it will move onto the House of Representatives, which is currently controlled by the Democrats. After that, it will likely end up on President Joe Biden’s desk to be signed into law.