Another echo of the US elections - investors started counting future profits. The STAR New Energy index jumped 6.46% on Thursday. Specifically, Sungrow Power, the manufacturer of solar power plants, added 7.45%, Trina Solar - 5.51%, CATL - 5.17%, and polysilicon producer Daqo New Energy - 9.87%. After Democrats took control of Congress, the market decided that Washington could restore support for renewable energy, restore tax breaks and slow the dismantling of environmental restrictions that the Trump administration had promoted. This is especially interesting for Chinese manufacturers. The US is a huge and deprived market for solar panels, storage and electrical equipment. Therefore, even a hypothetical decrease in trade barriers dramatically improves future revenue expectations. Today, Chinese products in the United States are subject to notoriously high tariffs: about 50% for solar products and 25% for grid batteries. The Trump administration has previously attributed the ban on new Chinese materials to concerns that the equipment could be used to disrupt the US power grid. Thus his advocacy grew not only in the hope of selling more, but also in the expectation that Washington would at least stop tightening the screws. Dako is a separate story. The company faces restrictions on exports to the US due to allegations of forced labor, and its facilities are on the UFLPA list. Therefore, an increase of almost 10% is also an expectation of a possible easing of restrictions. But there is a caveat: there are still no specific decisions on the abolition of tariffs. The impulse is mainly based on the mood. Furthermore, democratic support for green energy does not mean automatic entry of Chinese manufacturers.

Another echo of the US elections - investors started counting future profits. The STAR New Energy index jumped 6.46% on Thursday. Specifically, Sungrow Power, the manufacturer of solar power plants, added 7.45%, Trina Solar - 5.51%, CATL - 5.17%, and polysilicon producer Daqo New Energy - 9.87%. After Democrats took control of Congress, the market decided that Washington could restore support for renewable energy, restore tax breaks and slow the dismantling of environmental restrictions that the Trump administration had promoted. This is especially interesting for Chinese manufacturers. The US is a huge and deprived market for solar panels, storage and electrical equipment. Therefore, even a hypothetical decrease in trade barriers dramatically improves future revenue expectations. Today, Chinese products in the United States are subject to notoriously high tariffs: about 50% for solar products and 25% for grid batteries. The Trump administration has previously attributed the ban on new Chinese materials to concerns that the equipment could be used to disrupt the US power grid. Thus his advocacy grew not only in the hope of selling more, but also in the expectation that Washington would at least stop tightening the screws. Dako is a separate story. The company faces restrictions on exports to the US due to allegations of forced labor, and its facilities are on the UFLPA list. Therefore, an increase of almost 10% is also an expectation of a possible easing of restrictions. But there is a caveat: there are still no specific decisions on the abolition of tariffs. The impulse is mainly based on the mood. Furthermore, democratic support for green energy does not mean automatic entry of Chinese manufacturers.