Hedgeye’s new Energy analyst Fernando Valle described the current bearish environment for solar energy on today’s episode of The Macro Show.
“A lot of solar is related to rooftop solar that is financed with very low rates,” explained Valle. “Now that loan is closer to a car payment, which is 7-7.5%... it’s a lot more difficult to get those loans to make sense relative to your price point.”
“The demand embedded in what was solar when all these stocks were at the highs was really a function of objective capitalists saying, ‘if you’re going to give me 0% or free money, I’ll take it,’” added Hedgeye CEO Keith McCullough.
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