“Solar stocks have rallied sharply since May on signs of improved solar industry fundamentals and reduced concerns about Trump administration policies. The oversupply of panels that plagued the market in late 2016 has eased and company profit fundamentals are improving. In addition, the market was very encouraged to see a surge of about +45% in Chinese solar demand installs in 2017,” according to MAC Solar Index.

However, MAC Solar Index warned of some bearish factors that could hinder the solar sector’s rally, including availability of tax equity financing for the U.S. solar industry under the new tax plan, potential for a U.S. import tariffs on solar cells and panels due to Suniva’s Section 201 trade complaint, downward pressure on solar pricing from over production and other solar trade disputes that triggered tariffs.

While some may have been worried about President Donald Trump’s abrupt exit from the U.N. climate treaty framework and the administrations intent to rescind the EPA’s legal obligation to regulate CO2 emissions, the solar market has more or less absorbed the negatives from the Trump administration earlier this year.

For more information on the photovoltaic panel industry, visit our solar category.