Things may finally be looking up for American renewable energy investors, as share prices begin to reflect the sector’s buoyant potential.
While customers have seen plummeting prices for solar and wind generation, bringing both into the mainstream of utility supplies and prompting predictions of exponential growth in years ahead, equity investors in the sector have enjoyed bragging rights but not much else.
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“Stocks in the alternative energy industry have lagged the S&P 500 index over the last two-, five-, and 10-year periods,” equity research firm Zacks reports on the NASDAQ stock exchange blog.
So far in 2017, however, the firm’s index of alternative energy industry stocks is up 30.6%, handily beating the broader S&P index’s 19.1% rise.
“The industry’s performance suggests that investors see the space as enjoying enough momentum to offset the less friendly posture from the Trump administration,” Zacks observes.
“Driving this performance momentum appears to be the realization that growth in the industry is increasingly resulting from voluntary procurement by utilities and corporations due to declining costs of solar and wind technologies, and anticipation of a more carbon-constrained future.”