Solar stocks jump as Schumer, Manchin announce climate spending deal

Solar stocks jumped on Thursday after Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., said they’ve reached a deal on what would be the most ambitious climate spending package in U.S. history.

The “Inflation Reduction Act of 2022” includes $369 billion for clean energy provisions

“The entire clean energy industry just breathed an enormous sigh of relief,” American Clean Power CEO Heather Zichal said Wednesday evening.

“This is an 11th hour reprieve for climate action and clean energy jobs, and America’s biggest legislative moment for climate and energy policy,” she added.

The Invesco Solar ETF added 9.6% on Thursday morning. Residential solar installers Sunrun and Sunnova jumped 26% and 33%, respectively. SunPower gained more than 12%. SolarEdge and Enphase Energy each added more than 10%.

A strong start to earnings season also lifted the group. Sunnova shares jumped on Wednesday evening after the company topped revenue expectations during the second quarter.