- President Joe Biden invoked the defense production act to ensure more charging resources will be available as demand for EV’s are set to spike.
- Solar Integrated Roofing Corporation (OTC: Sirc), a major player in solar EV charging, announced it will change its name to “Solar EV”.
- ESG investors, mainstream car makers and hedge funds are all bullish on the EV charging market.
- Shortages in car batteries were a big concern with analysts – something the Biden administration aims to tackle head on.
Solar Integrated Roofing Corporation (OTC: SIRC) is on the cusp of a major victory in the EV charging market as President Joe Biden invokes the defense production act to secure more EV battery production for Americans. This is significant because the White House announcement comes just after SIRC announced major acquisition bids to become a dominant player in solar EV charging. It also announced that the company will change its name to “Solar EV”.
As analyst Aiden Welsh explains: “The announcement by the Biden administration shows that the U.S. government takes the EV market seriously. It is a glimmer of hope for Americans who seek to avoid high gas prices, and thousands of families who are hesitant to buy EV’s over concerns about the availability of batteries and charging facilities”.
Solar Integrated Roofing Corporation (OTC: SIRC) is a solar power, roofing systems installation and electric vehicle (EV) charging company which specializes in residential and commercial properties in the United States. SIRC serves communities across the country by providing a high quality experience which is facilitated by ever-present innovation and legacy-focused leadership. It can be considered the “Amazon” of solar, given the wide range of services which includes installation of solar energy systems, backup batteries and EV charging stations connected to their solar systems. The list also includes heating, ventilation, and air conditioning (HVAC) as well as the related electrical work.
Solar Energy and EV Market Increases
The market for both solar energy and EV has grown significantly in recent years. The US Bureau of Land Management has stated that, “Solar energy has seen dramatic deployment increases in the United States and worldwide over the past decade”. This is also reinforced by recent legislation such as Executive Order 14008 and the Energy Act of 2020 which has prioritized the Bureaus focus on improving the process to deploy renewable energy on public land. In addition to this the U.S. Departments of Transportation and Energy have announced that they will make almost $5 billion available to states to facilitate the creation of a national charging network for EVs. This will make EVs much more accessible to every American and further drive the EV market’s growth.
SIRC is ahead of the curve when it comes to all aspects of planning in relation to clean energy. This is demonstrated by their focus on solar energy, a technology that produces no carbon dioxide while creating electricity. This makes solar a clean form of energy production and a step in the right direction toward combating climate change. Clean energy also facilitates EVs as they are therefore removed from being powered by any form of fossil fuel. This is the technology of the future and the direction in which the energy generation industry is headed.
Solar power produced 3% of all electricity in the US in 2020 and this is expected to rise to 20% by the year 2050. This rate is expected to be even higher as the price of fossil fuels increases and the price of renewable energy installations decreases. Solar energy is also a massive employer in the US as it employs more than 242,000 people. This is more than the combined employment of all the fossil fuel sectors.
Is SIRC an investment opportunity?
These factors demonstrating the excellent growth in the solar industry are an illustration of the immense potential which investing in solar stock will bring investors. This is particularly true of SIRC as the company has experienced growth in its own right. This growth is expected to continue at a rapid pace as solar energy continues to grow in viability and appeal. This appeal is facilitated by the decreasing costs of solar energy installation and increasing innovation in the field. Innovation which is increasing the efficiency of solar technology making it an increasingly more attractive method of generating electricity.
SIRC stock is trading at $0.35 at the time of writing and has experienced a 52 week range of $0.27-$1.03. The stock may be considered undervalued as the solar industry is experiencing exponential growth and will continue to do so in the future as it is such a necessary technology to reduce greenhouse gas emissions and sanitize energy production. The growth in the sector is also driven by increasing government priority toward solar energy production and renewable energy production generally.
Defense Production Act Invoked To Support EV Demand
Americans first reaction to rising gas prices was to turn to electric vehicles. President Joe Biden was swift in acknowledging the pressure this will put on resources to ensure ample charging. Analysts expect the EV market to grow at a far more significant pace. Now, the Biden Administration has announced that it will invoke the Defense Production Act to increase the local production of materials necessary for the production of EV batteries. This will also facilitate the production of batteries required for long term energy storage which solar power utilizes. This will provide government support to companies which are producing or extracting the minerals necessary for these batteries. This support will reduce the reliance of the US on foreign markets for these minerals and lead to an overall increase in the production of EV batteries. As SIRC is in the EV market this only serves as further reason to consider investing in the company.
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A Global Mega Trend?
Tesla created its beachhead in the U.S. and has moved into Europe and the developed world at a rapid pace. Mainstream automakers with established networks are now expected to reduce the Tesla U.S. market size from 70% to roughly 20%. With peak oil prices and a global need to counter it with alternatives – and a maturing market for automakers, the developed world is fast approaching the tipping point for mass EV adoption.
The solar energy and EV market has already shown strong growth in recent years and this is likely to continue into the future. This is because of the spectacular environmental cleanliness of these technologies and the increasing shift away from fossil fuels. This shift will only continue to increase its pace as global warming continues to be a significant issue.
In anticipation of reaching this tipping point, several big players are moving fast: In the U.S. VinFast announced it will invest $4B in a new EV and battery plant in North Carolina. LG will also build battery plants in the U.S. and Canada.
As a result of this it is an ideal time to invest in the solar and EV market. The increase in government spending on these sectors will itself increase growth. The actions of the American government, by invoking the defense production act to support EV adoption, shows that this may be one of the biggest investment opportunities of our time. Millions of new EV’s will require charging and batteries and the shortage in charging facilities is real and will become more acute, making Solar Integrated Roofing Corp (OTC: SIRC) a viable candidate in this high growth industry sector.