Another clean tech firm is joining the S&P 500 just weeks after Tesla Inc.’s historic inclusion in the index.
Enphase Energy Inc., a California-based company that builds components that make solar power work, will join the index before trading opens Jan. 7. Its entrance is the exclamation point on a banner year for the company and for the solar industry broadly. The company’s shares have surged 562 per cent since the end of 2019, while the WilderHill Clean Energy Index is up 206 per cent.
“The big message is that the S&P is starting to evolve to reflect what’s happening,” said Joe Osha, an analyst at JMP Securities. “You have markets recognizing that these companies matter — that decarbonization is a real thing. It’s important. It has to happen.”
Also included in the index is clean-energy giant NextEra Energy Inc., which this year briefly surpassed oil supermajor Exxon Mobil Corp. in market value.