Congress’s refusal to renew the Investment Tax Credits (ITCs) that are critical to the growth of the solar business in the United States has helped pummel the solar sector over the last couple of months. Some modest good news on this front: AmTech’s John Hardy, the axe on solar stocks, thinks Congress will enact a short-term extension of the tax credits critical to the growth of solar in the US.
Any incremental positive news would help First Solar (FLSR), Akeena Solar (AKNS), et al.
Towards the end of this week there has been a lot of discussion brewing in DC on a couple of different fronts that could help solar. Looks like there are two outside chances of an ITC extension prior to election season in the form of a tax extenders bill or a broader piece of energy legislation.
Both the House and Senate have had Energy Legislation on the docket but housing and banking placing on the back burner. We are hesitant to give DC the benefit of the doubt and still fall into the camp that believes we get a [short-term] extension in November or December and a longer term extension in 2009 under a new administration.
There will however be discussion and news flow in the next couple of weeks that will show continued bipartisan support for the ITC extension which may be viewed as a positive given depressed valuations and sentiment; whether they can get all of the other pieces in place to push legislation through is as we said something we remain sceptical about. Any incremental positive on the US front is good for SPWR, FSLR, AKNS, STP, and ENER.
See Also: Latest Analysis, First Solar (FLSR)
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