Solar stocks decline after Trump criticizes clean energy, citing environmental concerns.

Solar stocks fell Thursday after President Donald Trump criticized clean energy, calling wind and solar power expensive and unreliable. Trump said his administration would not approve new wind farms or solar projects and redirect funds away from green programs. Sunrun, First Solar, and SolarEdge Technologies declined by 8%, 6%, and 3%, respectively. Despite the pullback, the sector has seen a strong rally in recent months, with shares of solar firms more than doubling in the past quarter.

Solar stocks experienced a significant pullback on Thursday following President Donald Trump's criticism of clean energy. Trump's remarks, which called wind and solar power expensive and unreliable, led to a decline in shares of Sunrun, First Solar, and SolarEdge Technologies, which fell by 8%, 6%, and 3%, respectively [2].

The president's statements came as part of his administration's efforts to redirect funds away from green programs and prevent the approval of new wind farms and solar projects. This move has sparked concern among investors and financial professionals, who have seen the solar sector rally strongly in recent months, with shares of solar firms more than doubling in the past quarter [2].

The criticism from Trump comes amidst broader concerns about the reliability and adequacy of the U.S. electrical grid. Clean energy organizations have challenged a July report by the U.S. Department of Energy (DOE), which warned of widespread blackouts if coal and gas plants are allowed to retire. The report, according to the groups, is an "arbitrary and capricious" rule intended to bolster interventions by DOE under the Federal Power Act [1].

The DOE's assumptions about load growth, net generation additions, and individual resources' contributions to system reliability have been criticized as unrealistic and incomplete. For instance, the report omits resources like the 800-MW nuclear plant expected to resume operations in Michigan later this year and underestimates the reliability contributions of gas-fired power plants [1].

The debate surrounding renewable energy sources and their impact on electricity prices has been ongoing. While some critics argue that wind and solar are unreliable and expensive, others point out that their deployment has been relatively slow compared to the retirement of traditional fossil fuel facilities. The Center for Strategic and International Studies has forecast that by 2030, AI data centers in the United States will consume upward of 84 gigawatts, highlighting the strain on the grid [2].

Despite the recent decline in solar stocks, the sector remains a key player in the transition to renewable energy. The push for clean energy has been supported by states like Iowa, Kansas, and Oklahoma, which have seen some of the smallest residential electricity price hikes despite leading in solar and wind generation [2].

References:

[1] https://www.utilitydive.com/news/clean-energy-groups-challenge-doe-grid-reliability-report/757912/
[2] https://www.washingtonexaminer.com/policy/3762167/trump-blames-wind-solar-rising-electricity-prices/