Certain solar stocks will fall Tuesday on proposed new utility rules in California.
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Three major California utilities are proposing new rules for measuring net energy that would adversely affect solar panel companies. This includes monthly customer fees and fees for access to the power grid. The rules would also reduce the amount for which customers could sell excess energy back to utility companies.
This could be bad news for solar panel companies operating in the state such as: Sunrun (NASDAQ:RUN), Solar power (NASDAQ:SPWR), and Sunnova Energy (NYSE:NOVA). Morgan Stanley analyst Stephen Byrd highlighted this in a notice to investors today.
While these new rules for solar stocks would certainly be bad, they are unlikely to be enforced. Similar efforts were made in the past when the California Public Utilities Commission shot them down. These new rules are likely to be pushed back similarly by the agency, reports TheFly.com.
Here’s how today’s news affects each of the three solar stocks mentioned above.
- Sunrun RUN shares are down 5% and more than 3 million shares have changed hands.
- Solar power – Over 2 million SPWR shares were traded today, and the stock is down 6.1%.
- Sunnova Energy – The NOVA share is down 3.6%, with around 850,000 shares being traded at the time of this publication.
At the time of publication, William White held positions (neither directly nor indirectly) in any of the securities referred to in this article.
Article printed by InvestorPlace Media, https://investorplace.com/2021/03/solar-stocks-news-why-run-spwr-and-nova-shares-are-down-today/.
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