Solar stock selloff creates buying opportunity 0

solar stock selloffSAN FRANCISCO (MarketWatch) — Solar stocks have been caught up in the selloff created by lower oil prices, but some on Wall Street believe a buying opportunity is knocking.

Crude has fallen about 25% since September, roughly mirroring the decline in solar stocks in the same period.

The perception is that low oil prices will lower demand for renewable energy, pressuring stocks in the sector. Even Tesla Motors Inc.  stock was caught up in the selling this week.

Ignore the fact that solar fundamentals are much more connected to government policies and to the price of natural gas, which powers most of the electricity consumed in the U.S., or the price of coal, electricity’s fuel of choice in many parts of the world. Analysts do not expect oil’s price slump to have any effect on solar demand.

 

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