Solar energy companies have been among the market’s biggest underperformers in recent weeks but traded well in the green on Friday. Have solar’s woes hit an inflection point?
Solar’s Performance: Investors have been bearish on solar energy in 2024. The solar-tracking Invesco Solar ETF (NYSE:TAN) is down over 25% year to date; solar’s performance in the past month ranks last in the technology industry.
The largest components have fared poorly following lackluster earnings. Rising material costs and political uncertainty aren’t helping, either.
Array Technologies Inc (NASDAQ:ARRY) has performed, comparatively, even in the past month, though is down over 61% in 2024.
What Happened Friday: Solar stocks were among the market’s top performers on Friday, according to Benzinga Pro.
Bloomberg reported on Friday morning that China could address oversupply concerns by curbing industry production. A new policy could speed up the retirement of less-efficient polysilicon plants; polysilicon is a key component in the solar supply chain.
The market quickly reacted:
- Shares of Canadian Solar closed the day up 9.83%.
- Shares of Enphase Energy closed the day up 3.37%.
- Shares of Array Technologies closed the day up 4.38%.
- Shares of First Solar closed the day up 1.24%.
What’s Next?: An obvious catalyst (or hindrance) for investors looking to invest in the solar energy industry is the 2024 United States presidential election between Vice President Kamala Harris and former President Donald Trump.
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Image: Midjourney
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