Solar energy stocks had been on a tear over the last few trading sessions thanks to a wave of favorable policy changes and investor optimism around clean energy incentives.
The U.S. Treasury Department and IRS have released updated rules for clean energy tax credits that were less restrictive than expected.
This has led to analysts, including those at UBS and Citi, to highlight the new rules as a win for solar developers. With uncertainty surrounding the solar industry being reduced, it may certainly be a more favorable time to invest in a power source that drastically reduces greenhouse gas emissions.
Keeping the strengthening outlook for the solar industry in mind, here are three stocks and an ETF that investors may want to consider in particular.
This post originally appeared at Zacks.