Fuel Cell, Solar Stocks Surge on Covid Bill, Capping Banner Year
(Bloomberg) -- Fuel cell and solar stocks are soaring to some of their highest levels in years after the U.S. Congress included provisions in the pandemic relief bill to extend clean-energy tax credits.
FuelCell Energy Inc. jumped as much as 25% to $13.48, its highest intraday price since 2018. Bloom Energy Corp. rose 2.4%. JinkoSolar Holding Co. climbed as much as 8.7%.
Clean-power stocks have been climbing for months, pushed higher by President-elect Joe Biden’s goals for fighting climate change. Plug Power Inc., which makes fuel cells for forklifts and recently jumped into hydrogen production, has seen its shares soar more than five-fold in the past six months.
The roughly $900 billion pandemic relief bill now awaiting President Donald Trump’s signature extends tax credits for solar and wind power projects as well as fuel cells.
The president on Tuesday demanded lawmakers increase the stimulus checks due to go out to most Americans to $2,000 from $600 in the same week that Congress passed the $900 billion bipartisan package. But Trump didn’t criticize the tax credits and didn’t say whether he would veto the relief bill.
Read More: Wall Street Shrugs Off Worry About Trump Stimulus Critiques
This month’s stock rallycomes at the end of a banner year for solar, with the U.S. projected to see a record amount of installations. Morgan Stanley argued in a research note that the bill would benefit not only companies that offer such gear but many of their customers as well, particularly electric utilities ramping up their use of renewable power.
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