Renewable Energy Point Of No Return: End Of Natural Gas Is Near?
In my previous article, I talked about replacing Kinder Morgan (NYSE:KMI) dividends with renewable energy dividends. Since that article, I’ve added Terraform Global (NASDAQ:GLBL) to my renewable portfolio and have a sell order for Kinder Morgan. I talked about how natural gas has been replacing coal and how renewable energy is growing very fast. I received a bunch of comments from solar skeptics and natural gas proponents that our dependence on natural gas is likely to keep growing for decades to come and one commenter suggested that at the current rate it might take 50 years for renewables to grow to 50% of power production.
But with the renewable energy tax credits extended through 2020 and then phasing out period after that, things are likely to change fast. The details of the extension are:
2016 – 2019 30%
2020 26%
2021 22%
2022 onwards 10%
As soon as the news was out solar stocks rallied (as of market close on 12/16), especially SolarCity (NASDAQ:SCTY) (up 34%) and SunEdison (NYSE:SUNE) (up 25%) for the day.
