Last year, funds investing in clean energy companies became the leaders of US capital funds in terms of profitability, VTimes reports, quoting the Financial Times. Energy Stocks In The US have tripled in value due to rising prices for companies developing solar energy.
Clean energy companies with the greatest potential
Former Vice President Joe Biden presents a $ 2 trillion sustainable infrastructure plan in the United States. According to this plan, the US energy sector will be carbon-free by 2035, and the entire country will be carbon neutral by 2050 and we will be able to find green energy companies easily.
Biden’s election victory will give the clean energy sector an additional boost, according to Wall Street. Democrats are in favor of developing the industry, which in the Senate could prove to be the majority in the election. This further stimulates investor interest in renewable energy companies. The key players in the market have the greatest growth potential, writes CNBC, mentioning the Bank of America experts.
Bank analyst Stephen Suttmeier expects solar stocks to rise significantly. The tax credit for them will be extended regardless of how the composition of the Senate changes, the expert said. Although he noted that solar stocks received “clear growth potential before the election”, he warned investors against exaggerated expectations. Suttmeier is sure that it is necessary to evaluate each company individually.
Ivestco Solar and Ivesco WilderHill Clean Energy
Invesco Solar, an exchange-traded fund with assets worth $ 3.7 billion, rose 238% by Christmas, surpassing the rating of mutual funds traded on the stock exchange and equity investments. Among the main assets of Invesco Solar are two producers of solar energy for residential buildings: Enphase Energy, whose capitalization increased by almost 600%, and Sunrun, whose shares increased in price by 400%.
Invesco WilderHill Clean Energy was the second most profitable fund traded on the stock exchange, which gained 220%. One of its biggest assets is the shares of FuelCell Energy, which designs and produces solar power plants. Its quotations have increased by almost 400% in the last year.
After strong results in 2020, we can expect a correction, says Rene Reyna, Invesco’s director of investments in thematic and specialty products. At the same time, it forecasts long-term growth in the renewable energy sector. The popularity of funds that invest in companies with a good environmental, social, and governance reputation will only increase, says Romain Boscher, director of capital investments at Fidelity International. Tony Thomas, deputy director of stock strategy at Morningstar, sees no reason to slow the flow of funds to such funds.
Sunnova Energy International
This American company operates solar and storage systems. Sunnova is one of SolarCity’s main competitors Elon Musk. The company operates in 12 US states and is one of the largest manufacturers of solar panels on the roof. Sunnova leases its equipment on long-term contracts.