Why Renewable Energy Stocks Popped on Wednesday

Shares of multiple renewable energy stocks jumped Wednesday -- with some hitting double digits -- as investors got a little more bullish on the industry. Earlier in the day, Enphase Energy's (NASDAQ: ENPH) shares were up 8.8%, JinkoSolar (NYSE: JKS) jumped 15.1%, First Solar (NASDAQ: FSLR) increased 10.6%, and FuelCell Energy (NASDAQ: FCEL) gained as much as 15.6%. At 2:30 p.m. EDT, shares of the four stocks were up 7.4%, 14.6%, 8.1%, and 11.7%, respectively. 

There were a few broad trends moving renewable energy stocks higher today, which is why we see such broad strength in the industry. The first is that Joe Biden continues to gain in polls of the presidential election. If he wins, the consensus is that it will be good for renewable energy deployment in the U.S. In a note to investors today about its new overweight rating on SunPower, Piper Sandler analysts said a Biden presidency would likely mean an extension of the 30% investment tax credit. That credit is already stepping down from 30% a year ago to 10% in 2022 for commercial and utility-scale projects and 0% for homeowners. An extension of the credit would be good for Enphase, JinkoSolar, and First Solar, and it could even help FuelCell Energy because it benefits from the same tax credit.

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Source Fool.com