Sunrun, Plug Power lead alternative energy stocks lower, whacked by rising rates
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Solar and other alternative energy stocks suffered broad losses Monday, with investor sentiment hammered by high interest rates that have caused financing costs for panel installations to surge, in addition to ongoing supply chain disruptions that have slowed residential and corporate solar system orders for much of 2023.
The yield on 10-year Treasury notes continued its sharp climb Monday, exceeding 4.7% intraday for the first time since October 2007 and ending at 4.682%, up 11 bps from 4.572% on Friday, while the yield on the 30-year Treasury rose 8.5 bps to 4.794% from 4.709% on Friday, settling at its highest since April 2010.
Among the day's losers: (NASDAQ:RUN) -10.5%, (NASDAQ:PLUG) -10.2%, (SPWR) -8.9%, (BE) -7.9%, (NOVA) -7.5%, (GEVO) -7.5%, (MAXN) -7.4%, (BLDP) -6.5%, (CLNE) -6.2%, (FCEL) -6.2%, (SHLS) -6.1%, (JKS) -5.7%, (CSIQ) -5.5%, (SEDG) -5.3%, (ARRY) -3.7%, (FSLR) -3.2%, (ENPH) -2.7%.
ETFs: (NYSEARCA:TAN), (FAN), (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (ERTH), (SMOG), (URA), (NLR)
Uranium-focused stocks, which have surged higher in recent weeks, also fell sharply: (SMR) -7.9%, (URG) -7.8%, (UUUU) -6.4%, (UEC) -6%, (CCJ) -5.2%, (DNN) -4.2%, (NXE) -3.5%, (LEU) -3.2%.
A steady build-up in industry inventories including panels, racking systems and power inverters has prompted installation companies to begin to cut costs on system components, which may spark consumer demand before year-end, some analysts say.

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