Time to Abandon Solar Stocks or Buy the Dip?

It was almost exactly a year ago that we published a couple of articles investigating the steep drops in many renewable energy stocks, from offshore wind energy to the biggest solar stocks. And it appears green tech stocks still haven’t reached the bottom. We recently issued yet another Trade Alert for Solar Edge (SEDG) after it sank 18% on the results of the U.S. presidential election. As we wrote in the alert, President Trump is more in the camp of “drill, baby, drill” and could weaken or repeal the Inflation Reduction Act (IRA), a bill that provides billions of dollars for clean energy investments and incentives.  

We’ve been here before when it comes to predicting political headwinds and tailwinds. After President Biden was elected in 2020, the Invesco Solar ETF (TAN), a pure-play solar ETF, soared more than 50% as investors got ready to start hugging trees. Yet the fund is down 70% with just $1 billion in assets under management (AUM) since Biden’s inauguration, despite the IRA and similar legislation in Europe. Now the assumption is