• Sunday, July 14, 2024
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Is it time to invest in solar energy? Why the solar market is now booming


Remember when solar stocks were in high demand? When everyone wanted a piece in renewable energy levels? That time is back. Although early last year, the demand dropped, and along with it the stock prices, renewable energy is making a comeback. The solar market is booming, and now is the time to get in. Joshua Rodriguez from aomarkets.com explains why:

The Paris Climate Change Deal

“Two big stories are about to lead to high demand,” says Rodriguez. “Paris reached a massive deal that involves 195 countries… [surrounding] the fact that the world is warming, and it’s the result of human intervention in the environment. Under the new deal… these countries will have to reduce reliance on fossil fuels and start focusing more on renewable energy.”

With the pending changes, individuals and businesses are scrambling for alternatives. Solar energy is becoming the new go-to, and investors know this. This is the first reason stocks are about to rocket.

Renewable Energy Tax Credits in the US

Rodriguez brings the decision to extend tax credits on those who use renewable energy.

“For several years at this point, the United States has offered a 30% tax credit as an incentive for business owners and consumers that… take advantage of renewable energy in their homes and offices. However, this tax credit was set to expire in the beginning of 2016… Recently, we heard news that this tax credit would be extended.”

Solar stocks were expected to drop in anticipation of the end of the tax cuts. Now that these credits will be available for the foreseeable future, investors will be even more eager to buy into the market.

Government Awareness

Now, because of these advances, and the increased awareness of the impacts of fossil fuels, it is not just consumers who want to make changed. Governments are more aware of the urgency of the energy situation, and because of the Paris deal, will need to find alternatives.

We can conclude “that 195 countries are now going to see massive increases in demand for renewable energy… and solar companies are going to see large increases in sales, revenue, net earnings, and ultimately their stock prices.”

Time to Invest in Solar

So, according to Joshua Rodriguez of AO Markets, now is a great time to invest in solar. The market is certainly going to boom, with industry leaders seeing huge increase in demand. It’sdefinitely worth serious consideration, and could make investors a lot of money in the short and long term.