Solar energy stocks are mostly higher in premarket trading this morning, after UBS upgraded Sunpower Corporation (Nasdaq – SPWRA) to a Buy, calling it the best-positioned U.S. solar play.
The positive sentiment is also spilling over to many other names in the group, as they all can potentially benefit from the same trends UBS says could cause residential solar adoption to double next year.
The job market is still rough, and fewer consumers can afford big solar installations. But system prices have come down in the past 12 months, prompting more consumers to take advantage of a 30% federal solar tax credit, as well as state incentives.
The combination means that consumers can in theory makek their money back on a solar investment in about 5 years… nearly half the payback time of a solar investment made just a few years ago.
Sunpower and Evergreen Solar (Nasdaq – ESLR) sharse were up nearly 5% at 9:15 Eastern. Meanwhile, JA Solar (Nasdaq — JASO), LDK Solar (NYSE – LDK) and Suntech Power Holdings (NYSE – STP) all were rising 1.5% or more in premarket trading.
– Mike Tarsala