Renewable Heavyweights Hit Lows as Power Demand Surges

Bargain hunters, take note that renewable energy stocks are trading at a steep discount. A tsunami of policy headwinds under Trump has suppressed wind and solar stocks compared to their fossil fuel peers. For investors, that price gap could hint at the sector’s next bright spark as America’s appetite for electricity keeps rising.

• Thanks to the One Big Beautiful Bill, $18.6B in clean energy projects were cancelled this year vs. $0.83B last year — while renewable investments plunged by 36% in H1.
• Despite the subsidy rollback, renewables remain price competitive to natural gas (Lazard) — with solar and onshore wind costing 84% and 56% cheaper than 16 years ago, respectively.

Worth remembering: With US electricity use surging 3x the historical average, stocks of old-school power producers have turned red-hot. By contrast, renewables like NextEraNEE

and AESAES

have lagged the market and trade beneath decade-long valuation multiples of expected earnings. Yet, analysts say that scaling back subsidies could break the industry’s boom-bust cycle and set it up for stable growth. For now, sentiment remains stuck at low tide, and the real turnaround may come only when sentiment flips the switch.