Enphase Energy drops 5% and First Solar falls 4% as the Fed's first rate hike in three years directly pressures residential solar financing demand. TAN slides 2% while SPY barely moves 0.2%, confirming the selloff targets solar specifically rather than reflecting broad market weakness. Unlike First Solar and Sunrun, Enphase remains up 7% year to date, so Friday's selling trims a gain rather than deepens an existing loss.
Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) Enphase Energy (NASDAQ:ENPH) is sliding again on Friday, giving back part of a bounce that formed earlier in the week. The Invesco Solar ETF (NYSEARCA:TAN) is down 2%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down only 0.2%, so the selling is concentrated in solar rather than spread across the broad market.
ENPH stock is at $34.29, down 5% in Friday morning trading. That leaves Enphase Energy stock up 7% year to date (YTD), so today's move clips a gain rather than deepens an existing hole. Meanwhile, First Solar (NASDAQ:FSLR) stock is at $193.38, down 4%, part of the same sector move.
Sunrun (NASDAQ:RUN) stock is at $8.40, down 4%, extending a much longer slide for the residential installer. The Federal Reserve raised interest rates this week, its first increase in three years, and left the door open to another. Residential solar is financed rather than bought outright in most cases, which puts the cost of a loan directly underneath demand for home systems.
That mechanism is the standing reason Enphase Energy trades on the rate path, and it explains why a macro headline can move the stock as sharply as a company release. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life.
Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Enphase Energy's residential microinverter and battery business is exposed to that dynamic more directly than a utility-scale competitor would be. When borrowing costs rise, homeowners defer or scale back the systems that carry Enphase Energy's hardware, and the demand signal into its channel softens with them.
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