High interest rates have dimmed the solar sector. Will coming cuts put a shine on their stocks?
More sunshine could be in the forecast for solar power companies like SolarEdge Technologies and Sunrun, whose stock prices have been dimmed by high interest rates
NEW YORK (AP) — More sunshine could be in the forecast for solar power companies like SolarEdge Technologies and Sunrun, whose stock prices have been dimmed by high interest rates.
Wall Street is betting that those high rates could start coming down by September. The Fed's key rate is at a two-decade high, making borrowing expensive and difficult. That's hampered financing for the residential solar sector and weighed down companies with growing inventory backlogs.
Interest rate cuts should trickle down to consumers and businesses. Most home solar projects are financed, with homeowners taking out loans for the installation. Often, companies allow homeowners to sign a lease for the equipment, which means the companies themselves need financing in order to operate.
Shares of SolarEdge, one of the biggest makers of rooftop panels and other solar power equipment, have slumped 76% in 2024, while more traditional energy giants like Exxon and Chevron have been rising.
