Solar stocks plummet as Solaredge warns of demand drop

Solar stocks, including SolarEdge, tumbled to a three-year low after SolarEdge warned of weakened demand in Europe, causing further pessimism in the renewable energy sector. The Invesco Solar ETF (TAN) dropped 8.5%, while Sunrun, Sunnova, and Enphase Energy also experienced significant declines. SolarEdge's stock fell nearly 28% after reporting missed revenue and lower guidance for the fourth quarter due to unexpected cancellations and slow installation rates in Europe. Rising interest rates and financing challenges have already impacted the solar sector this year. Goldman Sachs downgraded SolarEdge to neutral, citing concerns about the company's performance in 2024 and a significant deterioration in visibility.