What do rate cuts, the election mean for solar energy stocks?

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Julie Hyman,Maheep Manley,Interest Rate

Mizuho Americas director of clean energy equity research Maheep Manley joins Julie Hyman and Josh Lipton on Market Domination to discuss what next week's...

on Market Domination to discuss what next week's expected interest rate cut and the upcoming presidential election mean for the solar energy sector.

The analyst highlights that First Solar is “the biggest beneficiary” of current tax incentives as “more than 60% of their EPS in our estimates for 2025 would come from these incentives from the Inflation Reduction Act . One is obviously the fundamentals that helps reduce the interest expense going forward, but also in valuation.

But also trump talks about, uh uh, President Trump talks about, uh uh, he said he likes utility Solar.And he did say he wants jobs over here, which also bodes well for most of our companies over here.I think we've said in our notes, it's maybe it was down 20 25% impact to our stocks, but, uh, definitely, uh, the the business case or the status quo will be maintained under Kamala Harris mahi.

It feels like solar is sort of in a similar vein, but what what have those adoption trends look like?I guess with US consumers it it is as if you look at the penetration rates for residential solar with somewhere around 5% of rooftops of eligible rooftops are penetrated with solar.It depends on interest rates because most of the solar is bought on financing.

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