The capital markets are well aware of the stress and strife that coronavirus is putting on oil prices as the commodity continues to test new lows. One byproduct of the pandemic, however, that might not be getting enough coverage is the cloudy doom and gloom that the virus is bringing to the solar energy space.
Solar energy businesses are also feeling the pinch, but not getting the support they desire from the federal government.
“As Congress continues to address the ongoing COVID-19 crisis, we appreciate that they are prioritizing relief for families and small businesses,” said President and CEO of the Solar Energy Industries Association Abigail Ross Hopper. “There are several elements in this legislation that can help solar businesses and solar workers, including long-term unemployment insurance, business loans and provisions that support employee retention and other employee protections. We will be working to help our members understand what resources are available to them as a result of this legislation and how they can use those resources to help get through this difficult time.”
“As a result of this pandemic, the solar industry stands to lose half of our jobs — that’s 125,000 families who will no longer receive a paycheck, Hopper added. “Congress can help stem this tide. Economic stimulus legislation can help our companies sustain families and invest tens of billions of dollars into the economy over the next couple of years. We remain committed to helping our economy recover from this pandemic. We fully expect to work with Congress on any broad economic stimulus package. This will ensure that when this awful chapter in America’s history comes to an end, the clean energy economy is well-positioned to lead our nation’s economic recovery.”
As these developments unfold, one exchange-traded fund (ETF) to watch is the Invesco Solar ETF (NYSEArca: TAN). TAN, which started back in 2008, seeks to track the investment results of the MAC Global Solar Energy Index, which is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products.
For broad market exposure to energy via an ETF wrapper, investors can look at the Energy Select Sector SPDR Fund (XLE). XLE seeks to provide investment results that correspond generally to the price and yield performance of publicly traded equity securities of companies in the Energy Select Sector Index, which includes securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services.
For more market trends, visit ETF Trends.