Clean Energy, Wind and Solar Stocks Up After Democrats Sweep Midterms

By Connor Hart

Clean energy stocks climbed Wednesday, after the Democrats took control of both the U.S. Senate and House in a stunning midterm victory.

The change in the balance of power for President Trump's final two years in office removes the threat of a legislative repeal or further clawback of the Inflation Reduction Act, a legislative package signed into law by former President Joe Biden in 2022, which in part aimed to reduce carbon emissions with subsidies for speeding the build-out of renewable-energy projects.

Solar stocks advanced in morning trading, with companies including First Solar, Sunrun, Enphase Energy, Array Technologies and Nextpower all climbing. Turbine makers such as Vestas Wind Systems and offshore-wind company Orsted were also higher in morning trading on hopes that Democrats will counter Trump's anti-green energy policies.

Meanwhile, Plug Power climbed, as the Senate outcome preserves the strict hydrogen production tax credit which includes any project that begins construction by Jan. 2028. Fluence Energy also gained, buoyed by continued incentives for grid-scale battery storage installations that accompany renewable buildouts.

Write to Connor Hart at connor.hart@wsj.com