Magazine Archive 2021

As world leaders converge on Glasgow this month for COP26, a host of pledges, commitments, strategies and ambitions will be unveiled by participants. The plethora of measures can be confounding, as can the framing of decarbonization as an economic cost, to be borne by the economies, companies and workers of the world.

A supply chain interrupted by a multitude of factors, a COP outcome that left much to be desired, and a global economy and business environment still struggling to shake off the ongoing impacts of the Covid-19 pandemic. They’re hardly the ingredients for a year of expansion, yet as 2021 draws to a close, solar appears to have racked up another record year for installations.

With the wholesale transformation of the power industry from the inside out and other energy transition mega-trends, capital will continue to flow into renewables from ESG, energy funds, and retail, writes ROTH Capital Analyst Jesse Pichel. Look for a greater mix of unsubsidized economic solar projects to support improving revenue visibility, increasing earnings quality, and multiple expansions.

Solar stocks enjoyed a good start in 2021, writes Jesse Pichel of ROTH Capital Partners. In the United States, the Biden administration’s focus on climate change and the expectation of further incentives for renewables saw solar stocks rally in January. The global forecast is also positive, with China and others set for big installation numbers.

In the month of February, the solar industry witnessed a decline, writes Jesse Pichel of ROTH Capital Partners. Increasing prices throughout the supply chain and forced labor concerns from China spelled headwinds for the solar industry, but the decline can also be viewed as a healthy correction, following historic highs in January.

The solar industry faced headwinds in March, writes Jesse Pichel of ROTH Capital Partners, thanks to rising interest rates and, in California, concerns over increasing grid access fees. Despite this, the recent earnings season reveals strong fundamentals and a healthy outlook for most players.

Supply shortages and price increases slowed solar stocks in April, writes Jesse Pichel of ROTH Capital Partners. In the United States, however, new policies promise to foster growth in the second half of the year.

In May, cost increases across the supply chain left solar stocks underperforming in the market, writes Jesse Pichel of ROTH Capital Partners. For the U.S., higher prices for shipping and steel have hit particularly hard.

In June, solar stocks underperformed, writes Jesse Pichel of ROTH Capital Partners. The U.S. residential market retains a positive outlook, though rising prices and forced labor concerns represent significant challenges.

The outlook for U.S. residential solar remains strong, according to Jesse Pichel of ROTH Capital Partners. The large-scale segment, however, is hampered by rising costs and the likelihood of sanctions on Xinjiang-made materials.