Clean energy investing in grid modernization is surging

Clean energy investing in grid modernization is surging, with smart grid stocks climbing on the U.S. Infrastructure Act’s $7B allocation. Schneider Electric shares gained 4.3%, with options markets pricing in further upside ahead of Q3 results. The efforts come as Marylanders and state leaders grapple with rising energy costs . Though California’s Net Energy Metering (NEM) 3.0 policy update from April 2023 drove a decline in rooftop solar installation demand, California remains the largest rooftop solar market. We believe other states, such as Florida and Texas, are critical to market growth over the long term given large populations and low penetration. Analysts expect Q3 earnings from key players like First Solar and Enphase Energy to beat consensus estimates, driven by strong residential and commercial adoption rates.