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The Great Green Crash – Solar Down 40% • Watts Up With That?

Essay by Eric Worrall

First published JoNova; When climate advocates say “Net Zero”, are they actually referring to how much cash green investors will have left when the last bubble bursts?

Solar Stocks Shaken By High Interest Rates And Supply Chain Issues

By ZeroHedge – Nov 03, 2023, 9:00 AM CDT

  • SolarEdge’s revenue forecast falls significantly short of expectations, causing a 20% drop in its share value.
  • Renewable energy companies are struggling with supply chain issues and the impact of high-interest rates, leading to reduced guidance and missed earnings.
  • The abandonment of two major U.S. offshore wind projects by Orsted A/S indicates a larger trend of decarbonization targets being threatened by economic headwinds.

The renewable energy industry is in full collapse mode this week. First, Orsted A/S, the world’s largest offshore wind farm developer, abandoned two major US projects due to supply chain and interest rate impacts, and now solar stocks are being clubbed like a baby seal in US premarket trading on Thursday after solar equipment-makers SolarEdge and Sunrun reported dismal guidance amid waning demand. 

Let’s start with solar equipment maker SolarEdge Technologies. The company said current quarter revenues are expected between $300 million to $350 million, far below analysts’ estimates of $718.9 million, as per Bloomberg Consensus data. 

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More bad news for solar (from JoNova);

What happened to solar stocks? Investors ‘pick up the pieces’ after a brutal earnings season

Published: Nov. 7, 2023 at 1:14 p.m. ET
By Claudia Assis

Enphase’s stock loses 70% this year

Things were looking up for the U.S. solar-power industry. The Inflation Reduction Act, the climate legislation that passed in August 2022, boosted the savings of anyone looking to go solar, among its several clean-energy incentives. 

A little over a year later, however, investors sentiment about solar, particularly residential solar, is at a trough, the IRA notwithstanding.

“After a painful earnings season, we look to pick up the pieces and move forward,” James West, a analyst with Evercore ISI, said in a note Tuesday.

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JoNova notes Invesco’s green fund is down over 40% from its 52 week high. She also notes this news comes hot on the heals of crippling losses in the wind and EV markets.

This once again demonstrate’s Eric’s principle of green energy – green policies are self limiting. The ultimate backstop on political climate ambition is the catastrophic economic mess green policies cause.

The high interest rates which are crippling green energy and EV supply chains are largely due to energy price inflation, which is a direct consequence of green obsessed regulatory hostility towards fossil fuel. Green energy policies are directly driving the demise of the green energy industry.

Personally if I was invested in companies with exposure to this insanity, I’d be calling for the scalp of whichever intellectually challenged executive decided to gamble with my shareholder capital. This crash was inevitable and obvious, it was only the timing of the crash which was uncertain. But maybe that’s just me.

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