The U.S. Senate Just Freed Energy Storage Stocks to Soar 75X
Just two days ago, the U.S. Senate passed a landmark piece of legislation. And it sets the stage for a particular group of stocks to soar 75X over the next several years.
Yep. You read that right. It’s not a typo. Thanks to the Senate’s recent move, a certain group of stocks could soar 75-fold over the next several years. It would turn every $10,000 investment into a $750,000 payday.
It sounds too good to be true. I know. But it’s not. This legislation is truly historic — and it’s about to light a fire under an already red-hot hypergrowth tech industry.
The best stocks in that industry could be your golden tickets. They’re stocks that could make legends out of ordinary investors and fortunes out of small investments.
They are stocks you need to hear about today.
Without further ado, then, let’s dive right in.
Say Hello to the New Energy Economy
On Sunday, the U.S. Senate passed the Inflation Reduction Act. It’s a sweeping $750 billion healthcare, tax, and climate bill designed to, as implied, reduce inflation by growing America’s supply chains. It’s one of the largest bills ever passed by the Senate.
The legislation itself is quite beefy, convoluted and, frankly, controversial. But the piece I want to focus on today is its climate portion.
Most of that $750 billion – almost $400 billion – is being allocated to the U.S. energy sector, on the basis that the Russia-Ukraine war has emphasized the need for America to establish energy independence.
To do this, the U.S. must create a new self-sustaining energy economy free from the dependencies of foreign fossil fuels. The act’s $400 billion is set to act as a major accelerant for the creation of this New Energy Economy.
Some of the spending is going toward the oil and natural gas industry. However, the bulk 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 credit to be applied at the point-of-sale.
- Introduce a new EV tax credit for used EV sales.
A Boom Is Coming
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 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 because of this legislation, the Clean Energy Revolution will experience an unprecedented boom in the 2020s.
We agree. It sets the stage for rapid, robust uptake of EV, hydrogen, solar, and energy storage technologies over the next decade.
Most media attention over the past two days 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
This new legislation gives investors a multitude of options to capitalize on the accelerated Clean Energy Revolution.
There are solar stocks, which we like because solar is the world’s cheapest clean energy source with robust power potential. Plus, the recent bill just extended massive ITCs for solar by a decade.
You have wind stocks, which we also like because wind farms can generate power on a massive scale. And turbines can be built offshore.
You have hydrogen stocks, which we really like because 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, which we believe will yield the biggest stock market winners, is the energy storage sector.
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, solar and wind are intermittent energy sources. The sun doesn’t shine every day, nor does it shine at all hours. And when it isn’t shining, there’s no guarantee that the wind is blowing. Like the sun, wind is intermittent, too.
By themselves, then, clean energy sources cannot power the world at all times. It’s scientifically impossible. They need help.
Energy storage is the solution.
Energy Storage Boon
These technologies allow humans to store excess solar and wind energy on really sunny or windy days. That energy can then be deployed on cloudy or windless days, thereby enabling continuous power output at all times.
These technologies solve the huge intermittency problem of clean energy sources, 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 is defined by tons of clean energy (and the recent climate bill ensures it will), 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, in your computer, in your electric car. What’s another one in your garage to power your home?
It’s nothing – and that’s why energy storge technologies will become globally ubiquitous.
The Fastest Growing Industry in the 2020s
On its march toward global ubiquity, the energy storage industry will become the fastest-growing in the 2020s.
Let me repeat that. If energy storage technologies do become globally ubiquitous, the energy storage market will emerge as the fastest-growing industry in the world 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 the world’s renewable energy production is backed by 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…
Indeed, at 800 GWh, only about 10% of the world’s renewable energy will be backed by energy storage technologies. That’s not enough for a net-zero society. We need a number closer to and above 30%.
And that’s exactly where we believe our society is headed.
The Future of the New Energy Economy
By 2050, we believe global installed energy storage capacity will back up around 30% of renewable energy installed capacity. 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.
All that growth starts now, with the U.S. government formally introducing the first-ever tax credit for standalone energy storage projects. The catalyst for 75X growth has arrived. And 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 with the introduction of first-of-its-kind legislation to spur energy storage projects, all that growth will start today.
In our minds, energy storage represents the next great investment opportunity…
Like PCs in the ‘80s…
The internet in the ‘90s…
Cloud computing in the 2010s…
Energy storage in the 2020s will change the world as we know it. It’ll grow by thousands of percent. And it’ll mint a new generation of millionaires — likely just 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?
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.