Solar shares surge as China pledges measures against price war

First Solar (NASDAQ:FSLR) soars to the top of Wednesday’s S&P 500 leaderboard, +16.8% to its highest in nearly 16 years, on news that China’s main solar industry body called for an end to a profit-slashing price war.

SunPower (SPWR) +19.7% after surging as much as 26%, also helped by an added boost from an announced deal with Tesla to offer the company’s Powerwall 3 stationary battery.

Shares of solar and alternative energy companies sport broad gains, including Maxeon Solar Technologies (MAXN) +22.1%, Daqo New Energy (DQ) +16.6%, FuelCell Energy (FCEL) +16.2%, JinkoSolar (JKS) +15.8%, Array Technologies (ARRY) +15.7%, Shoals Technologies (SHLS) +13%, Nextracker (NXT) +12.5%, Sunnova Energy (NOVA) +12.2%, Stem (STEM) +11.3%, Canadian Solar (CSIQ) +10.8%, TPI Composites (TPIC) +10.7%, Fluence Energy (FLNC) +9.3%, Sunrun (RUN) +8.4%, Enphase Energy (ENPH) +7.8%, FTC Solar (FTCI) +7.7%, Plug Power (PLUG) +7.6%, Solaredge Technologies (SEDG) +7.5%, Ballard Power Systems (BLDP) +4.8%.

Invesco Solar ETF (TAN) +8.2%, touching a three-month intraday high $47.35.

China’s Photovoltaic Industry Association said in a WeChat post this week that it will crack down on sales of solar equipment and materials at below-cost prices, according to a Bloomberg report.

The post reportedly described a May 17 meeting attended by company executives and an official from the Ministry of Industry and Information Technology.

Chinese firms control more than 80% of production in every step of the solar supply chain, but their market value has shrunk in the past two years as a buildup of factories has outpaced global demand, leading to falling prices and lower profit margins.