Following an already strong week, renewable energy stocks jumped yesterday on the reveal of the “most ambitious climate spending package” in U.S. history.
What’s the big deal? In a surprising turn, Senator Joe Manchin is supporting a $369B spending package that includes energy and climate programs funding. The package will include:
- $10B in investment tax credits for electric vehicles, wind turbines and solar panel manufacturing.
- $27B for clean energy tech and $30B in loans and grants for electric utilities to shift towards clean energy.
Manchin — who holds a swing vote in the 50-50 Senate — previously said he wouldn’t support climate provisions without clarity on July inflation figures.
Renewables post strong gains: Upbeat earnings powered the renewable sector higher this week, and the bill gave an extra jolt to clean energy stocks yesterday:
- The iShares Global Clean Energy ETF (NASDAQ:ICLN) — which encompasses a wide range of solar, wind and other renewable companies, jumped 7%.
- American solar panel manufacturers and providers: First Solar (NASDAQ:FSLR) and Sunrun (NASDAQ:RUN) jumped 15% and 29%, respectively.
- Hydrogen and electric vehicle charging companies: Plug Power (NASDAQ:PLUG) and ChargePoint Holdings (NYSE:CHPT) rose 26% and 16%, respectively.
The bill was a big step forward but faces challenges as it still needs to pass the 50-50 Senate and the House.
Learn more: Biden energized the solar sector in June by pausing tariffs on solar imports.