Author Archives: Richard Asplund

MAC Solar Index Deceember 2020 Quarterly Review Changes
 

As part of the regular quarterly index review process that takes effect after the close of business on December 18, 2020, the following stocks will be added to the Index: ReneSola Ltd-ADR (SOL US) with an Exposure Factor of 1.0, Beam Global (BEEM US) with an Exposure Factor of 1.0, Grenergy Renovables S.A. (GRE SM) with an Exposure Factor of 1.0, and Solarpack Corp Technologica SA (SPK SM) with an Exposure Factor of 1.0. There are no other changes.

Notice of MAC Solar Index Methodology Change to Add Four Countries
 

November 25, 2020 – The index methodology for the MAC Solar Index will be changed to add four countries to the list of countries in which an Index constituent stock must be listed: Israel, Luxembourg, South Korea, and Taiwan. This methodology change will take effect as of the March 2021 MAC Solar Index rebalance. A public index consultation on this topic was previously issued on November 16, 2020.

MAC Solar Index Consultation on Index Methodology Change to Allow More Countries of Listing
 

MAC Solar Index Consultation on Index Methodology Change to Allow More Countries of Listing

November 16, 2020

MAC Solar Index is conducting a consultation with market participants on a proposal to add to the list of countries in which MAC Solar Index constituents must be listed. The addition of more stocks to the Index would be beneficial from the standpoint of improving diversification weighting and staying well above the continued listing requirement for a global index of having a minimum of 20 stocks. The Index currently has 26 stocks.

The MAC Solar Index currently requires constituents to be listed in one of the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. See the current Index methodology at https://macsolarindex.com/methodology/.

MAC Solar Index is proposing to add four countries to this list: Israel, Luxembourg, South Korea, and Taiwan.

The addition of Israel, Luxembourg, and South Korea would allow the MAC Solar Index to match a well-known standard of developed countries. Of those three countries, there is one stock in Israel at present that may qualify for inclusion in the Index and no prospective stocks at present in Luxembourg or South Korea.

Taiwan is being proposed as a country addition because there are currently four solar stocks that trade in Taiwan that may qualify for inclusion in the MAC Solar Index.

Questions:

1. What are the advantages and disadvantages of adding each of the above-mentioned countries? Would the addition of any of these countries create any problems for stakeholders from any standpoint? If so, which countries and how? Should any other countries be added to the consideration?

2. What would be the best timing for implementing this proposal if MAC Solar proceeds?

Please respond to this survey by November 25, 2020. After this date, MAC Indexing will no longer accept survey responses.

To participate in this consultation, please send an email to support@macsolarindex.com.

Thank you for taking the time to respond to this consultation.

Solar stocks rally on long-term growth prospects; Solar largely shakes off pandemic; China’s transition to subsidy-free solar is progressing well
 

Solar stocks rally on long-term growth prospects; Solar largely shakes off pandemic; China’s transition to subsidy-free solar is progressing well

See full PDF report with graphs at:

MAC-Solar-Sector-Update-Sep-2020

Solar Index Performance

The MAC Global Solar Energy Stock Index, the tracking index for the Invesco Solar ETF (NYSE ARCA: TAN), has rallied sharply during 2020 and posted a new 9-year high in September. The Index is up 97% on a year-to-date basis, adding to the rise of +67% seen in 2019.

The MAC Solar Index earlier took a sharp hit, along with the rest of the stock market in early 2020, on the emergence of the Covid pandemic. However, the Index has more than regained the early-2020 pandemic losses to rally to a new 9-year high.

Bullish longer-term factors for solar stocks include (1) the strong global solar demand picture that has resulted from the fact that solar has now reached unsubsidized grid parity in more than two-thirds of the world, (2) the stabilization of solar cell and module prices in 2019-20 that helped the profitability of solar manufacturers, (3) the pairing of solar with large-scale battery systems to provide a 24/7 electricity solution, (4) broadening solar growth in India, Turkey, Latin America, Middle East, and Southeast Asia, and (5) strong demand for renewable energy as countries seek to meet their carbon-reduction targets under the Paris COP21 global climate agreement.

Bearish longer-term factors for solar stocks include (1) the Covid pandemic that has hampered solar planning and installations, (2) the transition in China to unsubsidized solar by next year, (3) the continued negative effect on U.S. solar from the Section 201 tariff on imported cells and modules that took effect in February 2018, and (4) the obstacle to India’s solar growth from the government’s safeguard tariff on solar modules.

Solar stocks rally on long-term growth prospects

Solar stocks since spring 2020 have rallied sharply due to (1) the overall recovery in global stocks seen since the pandemic-induced dip in spring 2020, (2) the realization that solar is emerging as a key solution to climate change as it progressively becomes the cheapest source of new electricity generation and is paired with battery storage for 24/7 electricity, (3) the polls showing that former Vice President Biden is ahead for the November 3 U.S. presidential election, who has an aggressive clean energy agenda, and (4) a huge European renewable energy push to stimulate the pandemic-ravaged economy and to meet the Paris climate goals.

The Covid pandemic caused a temporary pause in solar growth in spring 2020, but the global solar industry has already shaken off the weakness in most areas and is still expected to show growth for 2020 as a whole. Despite the pandemic, Bloomberg New Energy Finance (BNEF) is forecasting that global solar installs in 2020 will grow by +8% to 127 gigawatts (GW) from 118 GW in 2019.

Solar growth is currently running strong in China and the U.S., and in many other countries around the world. China’s solar installs in 2020 will grow by +21% to 44.1 GW, and U.S. solar installs will also grow by +21% to 13.4 GW, according to BNEF.

Meanwhile, European solar installs in 2020 are expected to be flat as pandemic restraints hold back what would otherwise be strong solar growth in Europe. India’s solar installs are expected to fall due to the pandemic and other issues such as India’s tariffs, delays in subsidy payments, and grid connection delays.

MAC Solar Index September 2020 Quarterly Review Changes
 

As part of the regular quarterly index review process that takes effect after the close of business on September 18, 2020, the following stocks will be added to the index: Renova Inc (9519 JT) with an Exposure Factor of 0.5, Meyer Burger Technology AG (MBTN SW) with an Exposure Factor of 1.0, Azure Power Global Ltd (AZRE US) with an Exposure Factor of 1.0, and Clearway Energy Inc-C Shares (CWEN US) with an Exposure Factor of 0.5. There are no other changes.

MAC Solar Index Constituent Change July 2020
 

Terraform Power Inc A (TERP:US), a constituent stock in the MAC Solar Index, is being acquired by Brookfield Renewable Corp, and will be dropped from the Index as of the close of business on July 30, 2020 when the acquisition closes, and the proceeds will be distributed on a pro-rata weight basis to the other constituents in the Index via a divisor change.

MAC Solar Index March 2020 Quarterly Review Changes
 

As part of the regular quarterly index review process that takes effect as of the close of business on March 20, 2020, Sunnova Energy International Inc. (NOVA US) and Flat Glass Group Co. Ltd. – H shares (6865 HK) will be added to the MAC Solar Index, both with Exposure Factors of 1.0, while the following two stocks will be dropped from the index due to low liquidity: Beijing Enterprises Clean Energy Group Limited (1250 HK) and Meyer Burger Technology AG (MBTN SW).