Solar stocks rally as Europe proposes plan for new clean energy

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Several solar stocks are seeing sharp gains in Wednesday's trading after the European Union unveiled a multibillion euro plan to cut red tape for solar and wind farms to help reduce dependence on Russian fossil fuels, Financial Times reports.

Solar names sporting big gains include (FTCI) +11.2%, (ARRY) +10%, (SHLS) +5.3%, (NOVA) +5.1%.

ETFs: (NYSEARCA:TAN), (FAN), (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (SMOG), (ERTH)

According to the new RepowerEU plan, the European Commission wants half the EU's energy to come from renewable sources by 2030, more than double current levels, with total costs reaching into the hundreds of billions of euros to be offset by €84B in annual savings on imported fuel.

One proposal is to "introduce an obligation to have rooftop solar installations for all new buildings and all existing buildings of energy performance class D and above [the most energy-intensive]."

The European Commission wants to speed up construction of wind farms and solar arrays by forcing member states to designate "go-to" zones with lower environmental standards and processes for fast-track approvals, according to FT.

RepowerEU says full implementation of its proposals would cut gas consumption 30% by 2030.

Separately, Northland Capital initiated coverage of Sunnova (NOVA) with an Outperform rating and $30 price target, citing the company's "well-oiled dealership-based business model which is ready to burgeon with the growing solar demand."

Solar stocks have been mostly declining in recent weeks in reaction to the U.S. government's probe into solar panel imports, which are causing delays in solar and storage projects.