EGEB: Solar took a big stock market hit — but keep your nerve

In today’s Electrek Green Energy Brief (EGEB):

• Solar took a hit on the stock market this week — what does that mean for the industry?
• A new study shows that green energy is cheaper than coal, so is undercutting the fossil fuel.
• Hyundai will bring hydrogen-powered diggers to market by 2023.

The Electrek Green Energy Brief (EGEB): A daily technical, financial, and political review/analysis of important green energy news.

Solar and the stock market

It’s been a bear market this week for stock markets worldwide due to the coronavirus, and in the energy sector, the showdown between Russia and Saudi Arabia hit oil hard. So what’s going on with solar? It’s not great — but don’t worry just yet.

Motley Fool reports that solar stocks took a hit yesterday — like everything else. Solar companies are concerned that financing will dry up: “The freezing of credit markets or a drop in earnings may mean a loss of demand for solar development financing.”

But Motley Fool‘s outlook is optimistic. Travis Hoium writes:

Long term, the fundamentals of solar energy will win out, especially if interest rates stay low.

Solar energy is ultimately less expensive than fossil fuels as a producer of electricity because the upfront costs have fallen dramatically over the last decade and financing the long-term cash flows is cheap. For the time being, it doesn’t appear that either of those factors are going to change anytime soon.

If you’re a long-term investor willing to buy and hold stocks for a decade or more, now may be the time to start buying solar stocks. They’re taking market share from fossil fuels and growing in large- and small-scale installations. That’s a winning formula long term, even if the ride will be rocky in the short term.

Note: Electrek does not give stock advice. The above is the opinion of Motley Fool‘s writer.

Green energy is cheaper than coal

Carbon Tracker Initiative reported yesterday that  “coal developers risk wasting more than $600 billion because it is already cheaper to generate electricity from new renewables than from new coal plants in all major markets.”

The independent financial think tank gets right to the point:

Policymakers need to stop new investments in coal power immediately and redesign power market regulation to minimize stranded asset risk [and] accelerate the transition to a low carbon economy.

Banks are increasingly withdrawing from fossil-fuel company investments due to tougher emissions-cuts targets and cheaper green energy.

By 2030 at the latest, it will be cheaper to build new wind or solar than continue to operate coal across the globe, according to the report.

Reuters reports:

The report examined the economics of 95% of coal plants which are operating, under construction or planned worldwide.

Globally, 499 gigawatts (GW) of new coal power capacity is planned or under construction with an investment cost of $638 billion.

More than 60% of global coal plants are currently generating electricity at a higher cost than could be produced by building new renewables.

Hydrogen diggers

Hyundai Construction Equipment will bring to market an excavator series powered by hydrogen fuel cells by 2023.

Hyundai Construction Equipment, Hyundai Motor Group, and Hyundai Mobis are collaborating on the development of hydrogen-powered forklifts and medium and large-capacity excavators.

As the Construction Index reports, “Hyundai Motors and Hyundai Mobis will design and manufacture hydrogen fuel cell systems, including power packs, while Hyundai Construction Equipment will design, manufacture, and evaluate the performance of excavators and forklifts.”

Hyundai Construction Equipment has ramped up the development of green energy-run construction machinery in recent years.