Energy Storage Stocks Soar Even While the Market Sinks

Stocks to buy

Just a few months ago, the U.S. Senate passed a landmark piece of legislation. And it set the stage for a particular group of stocks to soar 75X over the next several years.

That may sound hyperbolic. But it’s true. And since that legislation passed, those stocks have been soaring. And that’s even as the market has struggled against the backdrop of roaring inflation, an aggressive Fed, and a slowing economy.

One of these stocks is up 189% since early May. Another is up 154%. Yet another is up 73% – all while the market has dropped over that same time!

So… what stocks am I talking about here?

Only the best ones to play the enormous energy transition making waves across the entire global economy: energy storage stocks.

Say Hello to the New Energy Economy

Before we talk about energy storage stocks – and why they represent the best investment opportunity on Wall Street right now – let’s first talk about the broader movement they’re a part of: the New Energy Economy.

In short, the world doesn’t have enough energy. We have too little production for far too many people. We need more energy. Some folks think that means more coal power plants. Some think it means putting solar panels and wind turbines everywhere. And some think it means restarting nuclear plants or introducing hydrogen as an energy source.

In reality, the New Energy Economy is about doing all that together. And the U.S. has made it clear that the way it intends to grow energy production is through clean energy technologies.

Two months ago, the U.S. Senate passed its largest climate bill, allocating almost $400 billion to the country’s energy sector.

Some of the spending is going toward the oil and natural gas industry. However, the majority is being pumped into incentivizing the production of alternative energy sources.

There are a lot of moving parts, but at a high level, this legislation will:

  • Extend 30% investment tax credits (ITCs) for solar another 10 years into 2033.
  • Introduce a new 20% ITC for standalone energy storage.
  • Create additional potential ITCs of up to 20% for clean energy projects that meet certain labor and location requirements.
  • Introduce a new 10-year production tax credit (PTC) for green and blue hydrogen.
  • Extend the EV tax credit indefinitely, remove the EV tax credit cap on manufacturers that have sold more than 200,000 EVs, and allow that tax credit to be applied at the point-of-sale.
  • Introduce a new EV tax credit for used EV sales.

That’s a lot. You can see now why we are calling this one of the most important pieces of legislation in U.S. history. It’s the largest-ever climate bill to be passed by the U.S. Senate. And it comes at a time when the incentive, urgency, and need to reinvent America’s energy system has never been greater. (Between soaring gas prices, rolling blackouts, and sky-high electricity bills, none of us are happy).

Consequently, many analysts project that, thanks to this legislation, the Clean Energy Revolution will experience an unprecedented boom in the 2020s.

We agree. This legislation allows for the rapid, robust uptake of hydrogen, EVs, solar, and energy storage technologies over the next decade.

Most media attention over the past few months has been focused on the EV tax credit. But we think another is far more important – and represents a far bigger investment opportunity.

The Best Clean Energy Sector to Invest in Today

On the heels of this new legislation, investors have a multitude of options to choose from when it comes to investing in the accelerated Clean Energy Revolution.

You have solar stocks, which we like. Indeed, solar is the cheapest clean energy source in the world and has robust power potential. Plus, the recent bill just extended massive ITCs for solar by a decade.

You have wind stocks, which we also like. Wind farms can generate power on a massive scale, and wind turbines can be built offshore.

And you have hydrogen stocks, which we really like. Hydrogen – unlike solar and wind – is transportable and ultra-dense. Not to mention, the new climate bill creates the first-ever PTC for clean hydrogen.

But our favorite niche of the Clean Energy Revolution is the energy storage sector. We believe energy storage stocks will yield the market’s biggest winners.

The story here is shockingly simple.

Of all the knocks against clean energy, only one really has any merit. And that’s the intermittency issue.

That is, the sun doesn’t shine every day. And the wind doesn’t always blow. By themselves, clean energy sources cannot power the world at all times. It’s scientifically impossible. They need help.

Energy storage is that help.

Those technologies allow humans to store excess solar and wind energy in things like batteries. Then the energy can be deployed when the sun isn’t shining, or the wind isn’t blowing. It enables continuous power output at all times.

Energy storage technologies solve the huge intermittency problem of clean energy sources, ultimately making them as reliable and consistent as fossil fuels.

So, let me state this clearly…

Clean energy can power the world but only with the enormous help of energy storage solutions.

Therefore, if the New Energy Economy will be one defined by tons of clean energy (which the recent climate bill ensures), then the New Energy Economy will also be one defined by tons of energy storage capacity.

We’re talking small-scale energy storage batteries at every house with solar panels… mid-scale energy storage technologies at every office and commercial building powered by clean energy… and large-scale energy storage systems at every solar and wind farm.

We’re talking energy storage solutions everywhere there is power – so, quite literally, everywhere.

That may sound outlandish today. But think about it – there are already dozens of batteries in your home. There’s one in your iPhone. There’s one in your computer and in your electric car. What’s another one in your garage to power your home?

Nothing – and that’s why energy storge technologies will become a global ubiquity.

Energy Storage: The Fastest Growing Industry in the 2020s

On its march toward global ubiquity, energy storage will turn into the fastest-growing industry in the 2020s.

Let me repeat that. If energy storage technologies do become globally ubiquitous, the energy storage market will emerge as the world’s fastest-growing industry throughout the next decade.

Here are the numbers.

At the end of 2021, global installed energy storage capacity measured about 46 GWh. According to our analysis, that means less than 1.5% of renewable energy production in the world is backed by energy storage today.

We think that by 2030, that number grows to 800 GWh of energy storage capacity. We’re not alone in that thinking. Bloomberg New Energy Finance is targeting at least 800 GWh of global energy storage capacity by 2030. So is every other major clean energy market research firm.

That means this market will grow from 46 GWh of capacity in 2021 to 800 GWh of capacity in 2030. That’s a 17X gain in 10 years.

To our knowledge, no other industry is due for 17X growth over the next decade.

And believe it or not, that’s just the tip of the iceberg…

Because at 800 GWh of installed capacity in 2030, only about 10% of the renewable energy capacity in the world will be backed up by energy storage technologies. That’s not enough for a net-zero society. We need a number closer to and above 30%.

That’s exactly where we believe our society is headed. We think that by 2050, global installed energy storage capacity will back up around 30% of global renewable energy capacity. And that will equate to around 6,000 GWh of energy storage capacity.

That’s more than 75X growth from 2020 levels.

That bears repeating – 75X growth into 2050.

Again, to our knowledge, no other industry in the world is positioned to grow this much, this quickly.

And all that growth starts now. The U.S. government formally introduced the first-ever tax credit for standalone energy storage projects. Since then, we have observed a flurry of positive business developments in the energy storage sector. And we’ve seen many of our energy storage stocks soar more than 100%!

The catalyst for 75X growth has arrived, and it’s already yielding real-world benefits. The market’s best energy storage stocks are already off to the races on Wall Street!

The Final Word on Energy Storage

We are hyper-bullish on energy storage stocks for the 2020s. We think this will be the fastest-growing industry in the 2020s. And after the introduction of first-of-its-kind legislation to spur energy storage projects, all that growth starts today.

In our minds, this industry represents the next great investment opportunity.

Like PCs in the ‘80s…

The internet in the ‘90s…

Cloud computing in the ‘2010s…

In the 2020s, energy storage will change the world as we know it. It’ll grow by thousands of percent and mint a new generation of millionaires. As it turns out, those millionaires will likely just be regular folks who believed in a big idea before the rest of the world caught on…

The question is: Will you be one of them? 

If you want to be, I encourage you to click here and learn about the next generation of superstar stocks.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Articles You May Like

3 Dow Stocks to Buy During a Stock Market Crash
Key Tips for Investing In REITs
7 Oil Stocks to Buy on the Dip or You’ll Be Kicking Yourself Later
Stocks making the biggest moves premarket: Planet Fitness, PG&E, Las Vegas Sands and more
3 Commodities to Invest in