Wipeout: Green Energy Stocks Confronting Soaring Costs

There appears to be no end in sight for the multi-billion dollar rout in renewable energy stocks, as a surge in borrowing costs threatens to squeeze returns in the sector for years to come.

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The industry received a fresh blow on Friday, after a sales warning from equipment provider SolarEdge Technologies Inc. sent shares in solar stocks across the US and Europe tumbling as much as 25%.

Until recently expected to displace oil-and-gas companies from mainstream investment portfolios, clean energy stocks have instead become a no-go zone for many. Investors have been pulling money out, wiping over $280 billion from the market capitalization of green stocks globally since their August 2022 peak — not quite boom-to-bust but a dramatic unraveling nonetheless for a market that was all the rage at the turn of the decade.

Now, with the yield on the 10-year US Treasury bond creeping toward 5%, their fortunes could be about to take another hit. Higher yields make it costlier to fund the huge investment that clean energy requires, giving investors reason to fret about returns.

[Puts a smile on your face. ~ Beege]

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