Green Stocks Rally

Today was a good day for the stock market – if you’re investing in green energy. Solar stocks rallies today after the Senate voted to extend solar tax breaks for another 8 years.

If you’re invested in SunPower Corp (+12.7%), Evergreen Solar Inc (+14.5%), or Akeena Solar Inc (+25%), you’re probably happy right now! In China, solar companies were also affected by the Senate’s decision, with one of the biggest boost going to Yingli Green Energy Holding Co Ltc, a company that suplies solar panels to Rutgers University.

Energy tax credits were set to expire at the end of the year, and this renewal definite helps to pave the wave for a green administration to take the presidential reigns next term. Although experts agree that renewable energy is the future, whether or not we make a pit stop at off-shore drilling, the Senate failed to pass a renewal bill on eight occasions over the past year, causing stock to slump.

On top of extending the tax credit for companies investing in solar technology, the bill also lifted the $2000 cap on resident solar system tax credits. That means that solar power is about to get a lot more affordable for people building new homes or thinking about updating their current energy system.

This isn’t just good for the stock market either. Extension of the solar tax credit will create 440,000 permanent jobs in the United States, which the job market desperately needs right now.

Is solar energy the answer? Well, maybe. As of now, solar energy is still too expensive to make sense for most people and business. However, this credit gives companies a chance to at least continue with their research. The stock market needs that hope for the future right now.

You can read more about this story from Reuters, or check out the latest stock market news at Talk Stock Trading.