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Why Now Is The Time To Look Towards Solar

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Why Now Is The Time To Look Towards Solar

While COVID-19 pandemic has put the markets on a virtual standstill, a couple of solar companies have provided bright spots.

Canadian Solar (NASDAQ: CSIQ) reported earlier this week an earnings surprise of 89%, while German company SMA Solar Technology (OTC: SMTGF) not only improved top and bottom lines in fiscal 2019, but set its 2020 guidance higher due to effective cost reduction measures and restructuring. Despite the COVID-19 drama, SMA actually confirmed its sales and earnings outlook for 2020.

Though part of that bullish outlook is due to Europe's stronger sustainability legislation, it also provides some positive news for a market struggling to find some. 

Canadian Solar's Earnings Report

The quarterly earnings per share for the quarter that ended in December 2019 beat the Zacks Consensus Estimate of $0.55, amounting to $1.04 per share. Over the last four quarters, the company managed to top consensus EPS estimates three times. Revenue amounted to $919.71 million, also exceeding the Zacks Consensus Estimate by 5.79%. This is also an increase compared to one year ago when it amounted to $901.04 million.

A Solar Stimulus

After years of growth, it is feared that solar could see a decline without state investment. The Legislature absolutely must act this year, or analysts fear that even without the impact of COVID-19, we will be seeing job losses. The U.S. government just released a $2 trillion COVID-19 package, but it doesn't include a specific relief for renewables. Measures that help the economy will help the solar industry indirectly, but more than 550 U.S. solar firms have urged Congress for more direct support.

Coronavirus Could Get America to Pass Its Biggest Climate Deal Yet

The pandemic could further increase the pressure for legislation, with the EU's Renewable Energy Directive leading the way.

According to a 2019 study in the journal Environmental Research Letters, replacing existing energy infrastructure depends on two factors. The first is making the price of renewable energy more affordable and widely available to the masses. The second is enacting government policies that call for strict targets on CO2 emissions. 

Though action on climate change in Washington DC is happening in baby steps, what we really need is a gigantic leap. The world needs a revolutionary bill that would authorize billions of dollars to redirect the economy away from fossil fuels and toward a low-carbon future. And historically, those kinds of bills only happen on the heels of a crisis. The coronavirus pandemic that is set to destroy the world's economy is one of them. So why not now?

 

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

The post Sun Is Shining Upon the Solar Industry Despite COVID-19 appeared first on IAM Newswire.

Image by andreas160578 from Pixabay

 

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