The Inflation Reduction Act includes a series of tax credits and grants that would funnel billions of dollars into the clean energy industry.
Pixabay
Renewable energy stocks rallied Monday, a day after the U.S. Senate passed a bill that unlocks nearly $370 billion to spur the transition to clean energy.
Climate change funding was a key element in the Democrats’ Inflation Reduction Act, which passed the Senate in a party-line vote on Sunday. The measure includes a series of tax credits and grants that would funnel billions of dollars into the clean energy industry, with some experts estimating it could trigger private investments that soar into the trillions.
Clean energy producers, such as solar panels, wind turbines, and hydrogen fuel cells, stand to be some of the bill’s biggest beneficiaries. Solar stocks
First Solar
(ticker:
FSLR
) and
Sunrun
(
RUN
) were rising on Monday, up 7.7% and 7.5%, respectively.
VWDRY
), a wind turbine developer, fell 1.8%, returning premarket gains.
Hydrogen fuel cell manufacturer
PLUG
) was gaining 4%, while
BE
), a company that builds fuel cells and electrolyzers, was up 5.9%.
The act expands the $7,500 tax credit available for the purchase of an electric vehicle, and offers up to $4,000 in credits to people buying used EVs.
Tesla
(
TSLA
) was up 5.5%,
LCID
) gained 7.2%,
Rivian Automotive
rose 9%, and zero-emissions truck company
Nikola
(
NKLA
) rose 6%.
The measure now heads to the House, where it is expected to clear a final vote as early as this week.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
