The European Union has a clear endgame: to be free from fossil fuels entirely by 2050.
It aims to eliminate its dependence on Russian oil and natural gas.
But switching to renewable energy won’t be cheap.
The transition away from fossil fuels will require a $3.8 trillion investment into solar and wind projects.
That’s why the European Commission unveiled a major renewable energy plan this past week…
Solar Energy Has a New Catalyst
The $220 billion RePower EU plan is rich with proposals that will boost the EU’s solar network.
The European Commission outlined a dedicated solar strategy that would double the EU’s installed solar capacity by 2025.
We’re almost halfway through 2022, so that’s in just two and a half years or so.
Plus, it wants to potentially make a legal obligation to have solar panels on every single new building.
Not just residential — every single new building.
Considering the EU’s support for clean energy in the past, I wouldn’t be surprised if these initiatives go into effect.
Solar Stocks Are in for Decades of Growth
Keep in mind the EU’s transition to solar energy is just a piece of a much bigger global trend.
According to BloombergNEF, installed solar capacity is expected to climb 4X globally by 2030.
(Source: BloombergNEF.)
The trend is clear as day: Solar stocks are in for decades of growth.
And there hasn’t been a better time to buy them.
With the carnage in tech stocks this year, the industry is now on sale.
The Invesco Solar ETF (NYSE: TAN) is down 16% on the year.
But when you dig into the actual companies held in the ETF, you can see growth is solid.
The average sales growth reported over the past year was 32%.
Rapid growth at cheaper prices? Sounds like a buying opportunity to me.
Ride the $16 Trillion Revolution
I think you’ll make money buying TAN at this level. But the gain potential on specific stocks is much higher.
That’s why you need to read Ian King’s special report, Infinergy: Ride the $16 Trillion Revolution.
Click here to find out more.
Regards,
Steve Fernandez
Research Analyst, Strategic Fortunes
Morning Movers
From open till noon Eastern time.
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