• Invesco's Solar ETF(NYSEARCA:TAN)suffered $417M of outflows in December, the worst month in its 14-year history, as solar stocks have been burned by a range of problems from potential rate hikes to the shaky outlook for subsidies.
• Several solar stocks have lost more than 10% in the past month, includingFSLR-13%,SPWR-14%,ENPH-30%,MAXN-26%,SEDG-14%,RUN-21%.
• The sector was hit last month after California proposed a subsidy cut for homeowners' solar systems, although Governor Gavin Newsom says changes are still needed before the proposal in finalized.
• Also, Florida's legislature is considering a bill that would crack down on rooftop solar credits, and the plan is supported by NextEra Energy's(NYSE:NEE)Florida Power & Light.
• Delays to President Biden's Build Back Better plan likely means some clean energy subsidies will be dropped as the bill gets "watered down," CFRA's Todd Rosenbluth tells Bloomberg.
• Solar companies also could suffer from higher interest rates because they rely heavily on leverage to finance their activities, according to WallachBeth Capital's Mohit Bajaj.
• Other funds that focus on renewable energy, such as the iShares Global Clean Energy ETF(NASDAQ:ICLN)and the ALPS Clean Energy ETF(NYSEARCA:ACES), also have lost value, though not as much as Invesco's ETF.
• Meanwhile, nuclear power is winning fresh looks from governments trying to achieve net-zero emissions, sparking some investor interest in uranium stocks and the Global X Uranium ETF.