Solar stocks felt the warmth from a Jan. 11 announcement that Korea-based Qcells will spend $2.5 billion on a massive expansion of its solar power manufacturing facilities in the U.S. state of Georgia.
Solar stocks getting a lift include First Solar, SolarEdge Technologies, Shoals Technologies, Array Technologies and SunPower.
A statement from President Joe Biden said the Qcells investment is the largest solar power investment ever in the U.S.
'"It will bring back our supply chains so we aren't reliant on other countries," Biden said. "It will lower the cost of clean energy and help us combat the climate crisis. And it will ensure that we manufacture cutting-edge solar technology here at home. It's a win for workers, consumers and our climate."
Qcells said it was making the solar power investment to take advantage of tax credits and other benefits in the Inflation Reduction Act, signed into law by Biden last summer.
Solar Stocks: Taking Advantage Of Tax Credits
The act kicks in $369 billion overall to expand renewable energy over the next 10 years. This includes long-term tax credits well above anything in the past. Equally important, it hopes to ease the nation's reliance on China, the dominant supplier of solar panels.
The act also includes about $30 billion in production tax credits. The credits aim to accelerate manufacturing of solar panels, wind turbines and batteries.
Qcells, a subsidiary of Korea-based Hanwha Qcells, said the investment will enable it to expand manufacturing output of 12,000 solar panels a day to 60,000. The Qcells expansion is projected to supply about 30% of total U.S. demand for solar panels. The company opened its first solar panel manufacturing plant in Cartersville, Ga., in 2019. Cartersville is about an hour's drive from Atlanta.
"We are seeking to further expand our low-carbon solar investments as we lead the industry towards fully American-made clean energy solutions," Qcells Chief Executive Justin Lee said in a written statement.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
