Solar stocks rise after Wall Street declares Harris victorious in debate against Trump.

• Wall Street believes Vice President Kamala Harris won the only debate against former President Donald Trump.
• The election's result will determine the fate of clean energy stocks, which have benefited from tax incentives under the Biden administration's Inflation Reduction Act.
• Trump expressed his admiration for solar energy, but simultaneously criticized it for occupying excessive space.

On Wednesday, solar and clean energy stocks increased following Wall Street's declaration that Vice President Kamala Harris had won the first and final debate before the November election.

In morning trading, both the and the gained more than 3% and more than 2%, respectively, while the benchmarks are down 28% and 11% this year due to uncertainty over the election's outcome on the clean energy industry.

The stock price jumped 8%, soared 9.7%, was ahead 5%, and gained 8.5%.

Ed Mills, a Raymond James analyst, stated in a note to clients late Wednesday night that while there may be a short-term increase in Vice President Harris's popularity after the first debate with former President Trump, the long-term effects are uncertain.

The New York Times/Siena College poll found Trump had a one-point advantage in the race to the White House, but betting markets have shifted back to levels before this poll, according to Citi.

The outcome of the election could significantly impact the energy transition, as some investors worry that if Republicans gain control of both the White House and Congress, former President Donald Trump may weaken or repeal the Inflation Reduction Act.

Trump supports solar — kind of

Trump consistently criticized the Biden administration's energy policy, asserting that "fossil fuel will be extinct" if Harris is elected in November. The ex-president disparaged wind and solar energy, before hastily providing a token gesture to clean energy corporations.

"Trump stated, "We'll return to windmills and solar power, which requires an entire desert to produce energy." He added, "Have you ever seen a solar plant? By the way, I am a big supporter of solar energy.""

Harris attempted to retract a statement she made in 2019 supporting a ban on fracking, which has contributed to a surge in natural gas production in the U.S. under the Biden administration.

During the debate, Harris stated that she would not prohibit fracking. Additionally, she highlighted the investments the administration has made in clean energy technology through the IRA.

As vice president for the past four years, I am proud that we have invested a trillion dollars in a clean energy economy and increased domestic gas production to unprecedented levels, Harris stated.

The vice president stated that a clean energy economy leads to investments in American-made products and American automobiles.

If Harris wins, analysts anticipate that the IRA will remain largely unchanged. However, if Trump wins, they believe it unlikely that he will fully repeal the IRA. Instead, they expect him to target certain provisions, specifically tax credits for electric vehicles.

GOP congressional districts have disproportionately benefited from investments in solar manufacturing, making his stance on solar less straightforward.