Today’s farmers aren’t just harvesting crops and managing livestock, they’re also becoming energy independent. If you think about it, an industry that is wholly dependent on nature and the environment should look to the sun for free power. No wonder agriculture was one of the first industries to adopt solar energy.
Economic incentives come from the promise of dramatically reduced energy expenses (electricity, diesel, etc.) as well as government subsidies, tax breaks and financing programs. Plus, there’s the opportunity to curb Co2 emissions and help save the planet. According to the Solar Energy Industries Association, 9% of the entire GHG emissions in the US come from agriculture.
The solar energy industry has been blazing hot for a while now on growing awareness about climate change, President Biden’s positive stance on the clean energy industry, and declining installation costs. However, the solar space is now under some pressure due to supply chain issues amid record demand. As such, SolarEdge Technologies (SEDG), Sunrun (RUN), Sunnova Energy (NOVA) and ReneSola (SOL) have recently experienced a sell-off and their share prices are expected to continue declining. Hence, we think it is wise to avoid these stocks for now. Read on.
NextEra Energy
NextEra is a leading clean energy company headquartered in Florida. The company owns Florida Power & Light Company, which is the largest rate-regulated electric utility in the U.S. It also owns a competitive energy subsidiary, NextEra Energy Resources, which is the world’s largest producer of solar and wind energy today. NEE stock has been trading sideways since the start of the year. However, this could be a buying opportunity for investors who believe in the long-term potential of clean energy.
Source: TD Ameritrade TOS
NextEra Energy Resources is one of the company’s divisions that provides long-term, contract-based renewable power to others. The company claims it is the largest generator of solar and wind power in the world. This Florida utility is very much leading the charge in renewables and should be a major growth engine for years to come.
Enphase Energy, a company best known for its solar microinverters - components that convert the direct current produced by solar panels into the alternating current that can be used by the grid - has seen its stock rise by 12% over the last week (five trading days) to about $131 per share.