By Alps Funds
GREEN LIGHT FOR ACES LAST WEEK
- As optimism builds for a second round of U.S. fiscal stimulus due to resurgent COVID-19 cases globally, the ALPS Clean Energy ETF (ACES) soared nearly 10% last week with gains from each of its 7 pure-play clean energy segments. ACES was driven higher by double digit gains from its Solar (+17.46%), Fuel Cell (+15.40%), and Biomass/ Biofuel (+12.39%) segments.
- ACES Solar names were buoyed by positive analyst sentiment, a potential Democratic election sweep, and positive sentiment on China’s preliminary new clean energy goals, which will be finalized in Q1 2021. Four of the 6 ACES Solar names climbed over 15% on the week, led by Sunpower (SPWR, 1.43% weight) rallying over 27%.
ACCORDING TO THE EDISON ELECTRIC INSTITUTE, MORE THAN HALF OF ALL NEW ELECTRICITY GENERATION CAPACITY ADDED OVER THE PAST EIGHT YEARS IN THE U.S. HAS BEEN WIND AND SOLAR.
- Within the Fuel Cell segment, Ballard Power (BLDP, 3.86% weight*) shot up over 12% last week after it announced it will be expanding manufacturing capacity of its fuel cell components by 6x by early 2021. Plug Power (PLUG, 5.39% weight*), the other ACES Fuel Cell name, was up over 21% last week after analysts upgraded the stock on its growth opportunities within fuel cell powered forklifts and heavy duty trucks.
FULLY INTEGRATED SOLAR PANEL AND BATTERY STORAGE SYSTEM IS HERE
- At its Battery Day a few weeks ago, Tesla (TSLA, 4.49% weight*) highlighted how fast lithium-ion battery costs are declining for use in Elective Vehicles (EVs). Solar equipment suppliers, such as Enphase Energy (ENPH, 5.87% weight*), and solar equipment installers, such as SunPower and Sunrun (RUN, 6.57% weight*), are benefitting from falling battery storage costs as they all roll out fully integrated solar systems with battery storage.
- The levelized cost