A modest recovery in solar stocks accelerated Monday on expectations surrounding President Joe Biden's executive action prohibiting any additional tariffs on solar panel imports for two years.
The White House program to re-energize clean energy projects across the country was first reported by Reuters on Sunday. The Biden administration's plan boosted U.S. and overseas-listed stocks, as the beleaguered solar industry sector leaned further into its recent rebound attempt.
U.S. solar projects slowed greatly since March when the U.S. Commerce Department began an investigation into whether components imported from Southeast Asia were bypassing tariffs on goods made in China.
The probe could result in retroactive tariffs up to 250% and has effectively ended imports from countries that make up around half of all U.S. solar panel supplies. It has also brought clean energy developments in the U.S. to a screeching halt.
Biden's executive action on Monday includes a two-year pause of anticircumvention tariffs on solar equipment coming from Cambodia, Malaysia, Thailand and Vietnam. This should allow imports to restart.
Three other executive orders signed Monday clear a path for increased domestic U.S. production of solar panels and other clean-energy technologies. Biden is using the Defense Production Act, which gives the president some authority over domestic industries, to drive U.S. manufacturing of solar panels.
The White House is attempting to increase domestic production capacity to 22.5 gigawatts by 2024.
"Ensuring a robust, resilient, and sustainable domestic industrial base to meet the requirements of the clean energy economy is essential to our national security, a resilient energy sector and the preservation of domestic critical infrastructure," Biden wrote in the executive order.
The Biden administration is also urging Congress to approve federal investments and tax cuts to advance U.S. clean energy development.
Solar Stocks to Watch
Among U.S.-based companies, Enphase Energy, Generac Holdings and Sunrun all notched broad early gains. China-based names Canadian Solar, Renesola and Daqo New Energy were also solar stocks to watch in today's stock market trading.
JinkoSolar hit 68.85 Monday morning. That's a new high for the world's largest solar panel manufacturer. JKS ended Monday up 7.98% to 67.10.
DQ stock and ENPH stock are the two top-ranked stocks in IBD's energy solar group.
Enphase, the California-based solar energy developer, was up 5.4% to 206.95 at Monday's close. Enphase cleared a 193 entry in what MarketSmith chart analysis plots as a double-bottom base. The buy zone on that breakout extended to 202.65.
Daqo, a Chinese solar panel producer, soared 12.07% up to 61.78. Daqo broke out of a 12-week base with a 53.70 buy point on Friday. It exited the base's buy range Monday, trading up more than 15% on the breakout.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
