Jun 25, 2019

Southern states lead 2019's stock market solar rally

Illustration: Aïda Amer/Axios

Solar panels? For investors in solar power stocks and ETFs so far this year, it's been more like solar profits.

What's happening: Invesco's solar ETF, up 51% year-to-date, has returned about four times the S&P 500's gain for 2019 and has even delivered almost double the average return of other clean energy ETFs, after a tough 2018.

  • Individual solar companies are charging even higher, as companies like Sunrun (77%), SolarEdge (71%) and SunPower (107%) generate particularly outsize returns.

"Things look a lot better so far this year," Tom Heggarty, senior analyst at Wood Mackenzie Power & Renewables (WoodMac), tells Axios. "I suspect stocks are doing better because the industry is expected to grow significantly."

By the numbers: A new report from WoodMac and the Solar Energy Industries Association (SEIA) finds that Q1 saw U.S. solar installations (combined utility-scale, residential, commercial and more) rise 10% versus the same period in 2018.

  • The 2.7 gigawatts of solar PV (panels that convert sunlight into electricity) installed made it the best Q1 ever, though other quarters have seen higher growth, and it was a 37% drop from Q4.
  • Analysts expect installed U.S. PV capacity to more than double over the next 5 years.
  • The survey forecasts 25% growth in 2019 compared with 2018.
  • The U.S. solar market saw more than 2 million installations, 3 years after the market surpassed 1 million installations. The industry is expected to hit 3 million installations in 2021 and 4 million installations in 2023.

The intrigue: Solar stock prices have outpaced other renewable energy options thanks to major pickups in residential installation of solar panels, particularly in the South. The uptick has come from states like Florida and Texas, so-called emerging markets in the industry, that are now beginning to see a changing regulatory environment pay dividends.

  • Maryland recently removed a cap on the amount of energy that solar system owners can exchange on the grid and passed a bill requiring the state to generate 50% of its electricity from renewable energy by 2030.
  • Almost a third of new residential capacity in Q1 came from states outside the top 10 markets in cumulative capacity, the highest share ever, data from SEIA report shows.

Yes, but: Non-residential installations fell to the lowest quarterly level since Q1 2017, dropping for a second year in a row. The report suggests policy shifts in states like California, Massachusetts and Minnesota may be stifling commercial growth.

  • The report does project non-residential installations will pick up again in 2020.
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Data: Investing.com; Chart: Axios Visuals

The big picture: "The first quarter reflected bit of a rebound for rooftop solar, and perhaps more importantly the amount of corporate investment in solar by companies such as Anheuser Busch, Starbucks, Facebook, Target, Walmart and many others," SEIA spokesman Dan Whitten tells Axios in an email.

  • Anheuser-Busch recently announced a 15-year virtual power-purchase agreement with Recurrent Energy for a 222-megawatt (AC) project in West Texas as part of its pledge to purchase 100% renewable electricity by 2025. It also has projects in New York and Oklahoma.
  • Starbucks in April unveiled a partnership with U.S. solar developer Cypress Creek on 8 Texas solar projects that will provide energy to 360 stores across the state.

Go deeper: Solar energy use is on the rise worldwide

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 5,383,582 — Total deaths: 344,077 — Total recoveries — 2,158,031Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 1,640,972 — Total deaths: 97,679 — Total recoveries: 366,736 — Total tested: 14,163,195Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 30 mins ago - Politics & Policy

Federal judge strikes down Florida law requiring felons to pay fines before voting

Gov. Ron DeSantis. Photo: oe Raedle/Getty Images

A federal judge on Sunday ruled that a Florida law requiring convicted felons to pay all court fines and fees before registering to vote is unconstitutional.

Why it matters: The ruling, which will likely be appealed by state Republicans, would clear the way for hundreds of thousands of ex-felons in Florida to register to vote ahead of November's election.

White House announces new coronavirus travel restrictions on Brazil

Brazilian President Jair Bolsonaro with Trump, March 19, 2019. Photo: Jim Lo Scalzo-Pool via Getty Images

The White House announced that beginning at 11:59 pm ET on Thursday, President Trump would suspend entry of non-U.S. citizens who have been in Brazil in the past 14 days in an effort to stop the imported spread of the coronavirus.

Why it matters: Brazil has reported nearly 350,000 confirmed cases of the coronavirus — the second-most in the world behind the U.S. — and has emerged as a Southern Hemisphere hotspot as other heavily affected countries in Asia and Europe have managed to get their outbreaks under control.