Some solar stocks fell on Tuesday following suggestions for new utility rules in California.
Three major utility companies in California are proposing new net energy metering rules that would negatively affect solar panel companies. This includes monthly customer charges and grid access charges. The rules would also reduce the amount for which customers could resell excess energy to power companies.
This could be bad news for solar panel companies that operate in the state, such as sunrun (NASDAQ:CLASSES), Sun Power (NASDAQ:SPWR), and Sunnova Energy (NYSE:NOVA). Morgan Stanley analyst Stephen Byrd points this out in a note to investors today.
While these new rules are certainly bad for solar stocks, they are unlikely to pass. Similar efforts have been made in the past with the California Public Utilities Commission bringing them down. These new rules are likely to face a similar pushback from the agency, reports TheFly.com.
Here’s how today’s news affects each of the three solar stocks mentioned above today.
- sunrun – RUN shares are down 5% with over 3 million shares changing hands.
- Sun Power — More than 2 million SPWR shares traded today and the stock is down 6.1%.
- Sunnova Energy – NOVA stock falls 3.6% with approximately 850,000 shares traded to date.
As of the date of publication, William White had (neither directly nor indirectly) any position in the securities mentioned in this article.
Article printed on InvestorPlace Media, https://investorplace.com/2021/03/solar-stocks-news-why-run-spwr-and-nova-shares-are-down-today/.
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