Solar's Struggle: Dark Days Now, But the Future May Still Shine

The horizon isn’t looking too bright for the solar sector these days. Despite rising energy demand, several solar-focused firms have suffered due to a myriad of factors. The November presidential election and policy uncertainty, high interest rates, low power prices, trade issues and rising material costs have sent much of the sector into the proverbial basement.

But there may be a ray of sunshine poking through the clouds.

The beaten-down solar sector offers long-term promise. Energy demand continues to rise, boosted by demand from the data centers. These factors coupled with rate cuts could be just what the suffering sector needs to shine bright in the years ahead. While it’s a risky play, investors may want to take on the risk.