Solar Power Surge: US Residential Installations Break Records, Stocks Set for Comeback in 2024

Solar stocks have suffered significant losses this year due to high interest rates, reduced customer spending, and policy changes impacting solar energy incentives. However, Wall Street analysts anticipate a potential comeback for the clean energy industry in 2024. Factors such as expected lower interest rates, deflation in the prices of solar panels and components, and the potential for US companies to increase market share in the global solar space are seen as tailwinds for the industry. Morgan Stanley analysts have upgraded First Solar and reiterated NextEra and Altus Power as high conviction Overweight stocks. Citi analysts also highlight the potential for US companies to benefit from trade policy protectionism and increased local manufacturing of solar equipment.