There’s a direct long term connection between the Fed’s planned higher interest rates in 2022 and financed solar installations in the new year. So why are analysts such as Motley Fool so torn up by yesterday’s short-term 7.2% midday drop in the stock of solar firm Enphase Energy (NASDAQ: ENPH). ENPH not only recovered half of that loss by the end of the trading session yesterday — the stock actually rose 1.31% to $152.80 in after hours trading last evening. To solar installers like Solar Integrated Roofing Corp. (OTC PINK: SIRC), interest rates may be moving higher in 2022, but unlike what analysts say, they will not stop the sure momentum in solar. Same thing in housing and electric cars. And SIRC is in the EV Charging Station business, as well, through subsidiary PLEMCo.
stockmarketpress.com features specialized coverage of related stocks in the solar, roofing, EV charging stations and battery charging energy industry such as Solar Integrated Roofing Corp. (OTC PINK: SIRC), Sunrun, Inc. (NASDAQ: RUN), Blink Charging Co. (NASDAQ: BLNK), Tesla, Inc. (NASDAQ: TSLA), GM (NYSE: GM), ChargePoint (NYSE: CHPT), EVgo (NASDAQ: EVGO), SolarEdge Technologies, Inc. (NASDAQ: SEDG), First Solar, Inc. (NASDAQ: FSLR), SunPower (NASDAQ: SPWR), Gibraltar Industries, Inc. (NASDAQ: ROCK), Spartan Acquisition Corp. II (NYSE: SPRQ). and Canadian Solar Inc. (NASDAQ: CSIQ).
What Is The Connection Between Higher Interest Rates And Solar: A Lot Because They Dictate Solar System Installation Futures; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Would Benefit From More Solar Systems In 2022
The media in general seems down on solar for several reasons. Now, potential higher interest rates are the newest reason. Meanwhile newspapers, magazines and cable TV are cheerleaders for the growth of electric vehicles. These are $70,000-$100,000 purchases by consumers, wholly financed, and subject to higher interest rates, as well.
What gives?
The Wall Street Journal this week played ‘Debbie Downer’ on solar for several reasons:
- It cited the California Public Utility Commission’s (CPUC) proposed ruling on net metering — not finalized yet until early in 2022 which would add higher fees to solar system owning consumers trying to sell solar-powered excess electricity to the central grid. New access fees are coming. It also discussed lower paybacks to solar consumers for selling their excess solar powered electricity to the central grid.
- These are public utilities vs. homeowner solar system owners. That’s strange, because buyers of new residences in California were mandated last year to run wholly on solar power. Confused?
- The WSJ concluded that because of this and other issues, rooftop solar’s “training wheels” had to come off at some point. “Expect some wobbles ahead, but not a crash,” it concluded in a ‘Heard On The Street ‘
This is not a ringing endorsement. Investors should believe the facts. One non-profit estimates that solar and other renewable energy sources will within three years generate 30% of the nation’s electrical capacity —soaring from just 25% today — due to its momentum from new funding and sophisticated technology. Solar and growth are here to stay.
Ken Bossong, executive director of non-profit Sun Day Campaign, says “Conservatively, over the next three years, renewables should expand from about a quarter of the nation’s generating capacity today to at least 30% and probably more.” What Is The Connection Between Higher Interest Rates And Solar: A Lot Because They Dictate Solar System Installation Futures; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Would Benefit From More Solar Systems In 2022.
Rather than reading online and in print how solar is “wobbling” and an analysis of how a solar stock is trading mid-session, investors need to take a more serious look at how solar is gaining ground.
Despite governmental tailwinds, some headwinds are slowing but not stopping — solar growth. California may be first in rooftop solar with 3.1 million customers owning solar systems, but Massachusetts is not far behind. Government officials there blame the bureaucracy for snafus. They will be overcome.
So, too, will the moves by utilities in California to paint with a broad brush and make energy efficiencies for solar system owners gaining at the expense of low income rate payers.
Rechargeable solar batteries are an important buffer for solar system owners. They can store their excess electricity themselves — or share it with other solar system owners — and SIRC is in the Tesla (NASDAQ: TSLA) PowerWall solar battery installation business, too.
Yes, interest rates will rise in 2022 by the Fed. It will not stop the boom in the consumer housing market, electric car sales or solar rooftop installations. They may play a role in this — like higher gas prices impact holiday driving — but they will not seriously impact growth. Consumers are determined to live with it for the long term good.
Solar and other renewables are generating a greater percentage of the nation’s capacity needs. According to site ‘Bring Me The News,’ electric rates have jumped some 30% over the past 10 years in some states. That makes solar not just a conservation buy, but also an energy efficient purchase.What Is The Connection Between Higher Interest Rates And Solar: A Lot Because They Dictate Solar System Installation Futures; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Would Benefit From More Solar Systems In 2022.
Joining the central grid for solar is inevitable, but it can also be profitable and efficient. It is not just rejecting the carbon gases from fossil fuels, but important economic sense to make the move to solar now.
SIRC is well positioned in this strategy because it is an authorized installer of Tesla’s (NASDAQ: TSLA) PowerWall Rechargeable Solar Battery Systems.
Homeowners and small business potential buyers of solar systems can see clearly that 2022 offers them a rare chance to beat central grid electricity increases. They can also move now before federal tax credits for solar drop from 26% to 22% in 2023. Solar loan money is plentiful and low cost. The time to commit to solar is now at little or no cost.
Central grid electricity is climbing in cost — making the payback period for solar less than eight years. Solar buyers can install systems for next to nothing if they do it now.
Utility companies, such as the California Public Utilities Commission (CPUC), seek to raise rates against solar system homeowners — solar proponents are fighting back against ‘critical peak pricing’ from utilities. To incentivize potential solar system buyers, solar proponents have developed strategies to make buying and owning solar a financially efficient investment. Solar installers like will benefit.
The strategy overall means staying away from the peak-demand higher rate fees utilities seek to charge through higher ‘critical peak pricing’ from utilities. Homeowners can customize their solar savings by saving their solar-generated electricity for peak time usage — when electricity costs more from the central grid.
What Is The Connection Between Higher Interest Rates And Solar: A Lot Because They Dictate Solar System Installation Futures; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Would Benefit From More Solar Systems In 2022
Learn more about SIRC at https://www.solarintegratedroofing.com/corporate-governance/leadership/.
Source: Stock Market Press
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