(Bloomberg) --Shares in clean energy companies took a sharp hit following Donald Trump’s recent election win. Trump, who has criticized green policies as a “green new scam,” has hinted at imposing tariffs that could impact the industry.
The WilderHill Clean Energy Index dropped 6.7%, with solar companies among the hardest hit: Sunnova Energy fell up to 51%, First Solar dropped almost 20%, and Sunrun declined 29%.
Despite the market’s knee-jerk reaction, many projects backed by Biden's Inflation Reduction Act (IRA) are likely to continue, especially in red and swing states where Republican leaders support the job creation these projects bring. While Trump has vowed to roll back the IRA, analysts like Pavel Molchanov of Raymond James suggest that investment incentives could stay intact given their popularity across conservative states.
Meanwhile, concerns over Trump’s proposed tariffs on foreign parts have added uncertainty to the renewable energy outlook. European clean energy companies like Denmark's Orsted and Vestas also saw losses.
However, analysts remain optimistic, seeing the market correction as a potential buying opportunity. Rob Barnett of Bloomberg Intelligence noted that clean energy’s growth is driven by more than federal policy, pointing to solid fundamentals and an ongoing push toward renewables, regardless of short-term political shifts.
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