Solar Stocks Shine On Heels Of California Utilities Decision

Solar energy stocks spiked across the board after California state officials decided to leave the net metering program (which requires utilities to compensate solar power users for the electricity they conduct to the grid) unchanged. Officials denied Edison International EIX’s Southern California Edison’s request for new charges for solar energy users.

Edison, PG&E Corporation PCG and SDG&E have repeatedly argued that solar energy users are making electric energy more expensive for its users, as they aren't paying for the maintenance of the grid. However, the public utilities commission’s members mostly disagreed with their case.

“Solar advocates have called the utility industry's arguments misleading and short-sighted. What the utilities haven't accounted for, they say, are the benefits rooftop panels provide for all Californians, such as reducing strain on the electric grid and helping avoid the construction of expensive new power lines. Rooftop solar installations also limit the need for fossil fuel-fired power plants, thereby slashing the carbon emissions responsible for global warming — a key policy goal for California and an economic benefit to society,”The Desert Sun explained.

In the end, status quo prevailed, mainly on the back of insufficient evidence to justify a policy change, which will remain the same until 2019, officials said. On the back of the good news, solar energy stocks spiked on Wednesday trading. Below are some of the stocks on the rise:

• JinkoSolar Holding Co., Ltd. JKS
• SunPower Corporation SPWR
• Canadian Solar Inc. CSIQ
• JA Solar Holdings Co., Ltd. (ADR) JASO
• Yingli Green Energy Holding Co Ltd (ADR) YGE
• SolarCity Corp SCTY
• Trina Solar Limited (ADR) TSL