The industry subsidy, known as the ITC, “offers owners of solar systems a tax credit worth 30 percent of their systems’ costs, and both companies would be adversely affected if it was reduced or eliminated. Wind and solar have been the fastest growing sources of U.S. electricity since 2014, spurred by federal tax credits. The credits are scheduled to be mostly phased out in the 2020s,” according to Bloomberg.
The clean energy sector found support under President Barack Obama as the administration pledged to fight against global warming and climate change through heavy subsidies into green technology. However, Trump, who called climate change a hoax perpetrated by China, pledged to cancel last year’s Paris climate agreement and remove Obama’s Clean Power Plan, could reverse years of supportive alternative energy policies.
TAN’s year-to-date performance is all the more impressive when considering oil prices are plunging. Previously, solar stocks have risen when oil prices do the same because expensive oil renews calls for cheaper energy alternatives. TAN has not finished higher on an annual basis since 2013.
For more information on the photovoltaic panel industry, visit our solar category.