Today marked the first total solar eclipse to sweep the U.S. in almost 100 years. While the eclipse created excitement among many, with solar eclipse glasses flying off the shelves, the day acted as a test for solar companies.
The U.S. power grid “hasn’t seen this sort of natural phenomenon since solar became a thing,” said Nicholas Steckler, an analyst at Bloomberg New Energy Finance . “With so many renewables coming online, especially in the last five to ten years, there is more impact from an eclipse.”
The U.S. Energy Information Administration expected the eclipse to block at least 70% of sunlight over the power plants that produce almost half of the United States’ major solar power capacity.
Let’s take a look at how solar stocks reacted to the total solar eclipse in the U.S. today.
A multitude of solar stocks fell during trading today. Shares of Canadian Solar Inc. CSIQ closed the day down 9.86% to $14.99 per share. JinkoSolar Holding Company JKS stock tumbled 9.99% today, closing at $23.70 per share. Shares Sunrun Inc. RUN stumbled 2.19%, closing at $6.70 per share, while SolarEdge Technologies Inc. SEDG stock fell 2.43% and closed at $26.05 per share.
Meanwhile, Renesola Ltd. SOL stock took a hit, falling 3.07% to $2.53 per share. Shares of SunPower Corp. SPWR also stumbled 4.33% to $8.84 per share. Meanwhile, Vivint Solar, Inc. VSLR stock went down 2.62%, closing at $4.65 per share, as Enphase Energy In. ENPH stock fell 2.57% to $0.84 per share at market close.
Shares of First Solar FSLR also fell 4.37% today, closing at $45.96 per share, although the company says it spent a year planning for the eclipse. This included holding dress rehearsals, but operations manager William Byrd warned beforehand of “unexpected things… it’s a pretty big megawatt drop.”
One of the only solar stocks that didn’t stumble today was 8point3 Energy Partners CAFD stock, which closed the day up 1.95% to $14.50 per share.
Additionally, a couple solar ETFs fell today. Guggenheim Solar ETF TAN stock tumbled 2.31%, closing at $21.13 per share, while shares of VanEck Vectors Solar Energy ETF KWT fell 0.79% to $42.61 per share in the same time frame.
A Ray of Hope
Sunrun’s CEO and co-founder, Lynn Michelle Jurich, used the eclipse to demonstrate the importance of solar power in the company’s August 7 th conference call.
“The solar eclipse highlights just how bright the future will be,” Jurich said. “The sun is one of the most reliable and predictable energy sources in the world. Just think about it, at any given place on Earth, the sun on average takes a break once every 300 to 400 year, and we know about it well in advance.”
However, not everyone believes that the eclipse is the reason that solar stocks have fallen today. According to Barron’s , oil dropped 2.4% today, which makes solar less competitive and could explain the tumbling shares.
In any case, if the eclipse did hurt solar stocks today, there won’t be another total solar eclipse in the U.S. for 2,422 days. On April 8th, 2024, the eclipse will have a slightly different path, including cities like Dallas and Indianapolis. So while solar stocks took a hit for now, the companies have almost 7 years to recover and to prepare for the next one.
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GUGG-SOLAR (TAN): ETF Research Reports
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First Solar, Inc. (FSLR): Free Stock Analysis Report
Renesola Ltd. (SOL): Free Stock Analysis Report
JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report
SunPower Corporation (SPWR): Free Stock Analysis Report
Vivint Solar, Inc. (VSLR): Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report
Sunrun Inc. (RUN): Free Stock Analysis Report
Canadian Solar Inc. (CSIQ): Free Stock Analysis Report
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
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