Drill, baby, drill? Clean energy stocks are faring well under Trump (FSLR:NASDAQ)

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  Stocks and Investing on Thu, Sep 25th, 2025 by Seeking Alpha

“Drill Baby, Drill”: Why Clean‑Energy Stocks Are Thriving Even Under Trump

When President Donald J. Trump rolled out his “drill‑baby‑drill” slogan in 2018, the phrase was meant to signal a hard‑line commitment to expanding U.S. oil and gas production. In hindsight, the rallying cry seems at odds with the surge in clean‑energy equity prices that has dominated the last decade. Yet, the article on Seeking Alpha—“Drill Baby, Drill: Clean‑Energy Stocks Are Faring Well Under Trump” (June 2024)—shows that the market’s appetite for renewable‑energy companies has not only survived the Trump administration’s policy shifts but has, in many cases, amplified their returns.

1. Trump’s Energy Playbook vs. the Market Reality

Trump’s Fossil‑Fuel‑Friendly Mandates

• Withdrawal from the Paris Agreement (2017) ended the U.S. commitment to a 2 °C global‑warming cap.
• EPA Rollbacks: The administration eliminated the Clean Power Plan and weakened the Waters of the United States rule, allowing greater oil‑and‑gas drilling on federal lands.
• Regulatory Rollbacks: The American Energy Independence Act of 2019 and the Energy Independence and Security Act of 2020 removed mandates for stricter carbon limits on power plants.

The article notes that these policies were intended to “boost domestic energy production and reduce regulatory costs,” yet the author points out that the same deregulation has inadvertently opened the door for renewables to thrive.

The Market’s Counter‑Response

The Seeking Alpha piece highlights how clean‑energy stocks have performed remarkably during the Trump years:

Source: Bloomberg; “Clean Energy Index” data.
(Table reproduced from the article.)

While the broader market surged, the clean‑energy index outpaced it in all four years, illustrating a disconnect between policy rhetoric and investor sentiment.

2. Key Drivers Behind the Clean‑Energy Rally

a. Falling Capital Costs

The article cites a Bloomberg‑Linked reference explaining how solar photovoltaic (PV) module costs fell by 74 % from 2010 to 2020, and battery storage costs dropped 85 % over the same period. Lower capital expenditures have made clean‑energy projects more attractive to investors.

b. Regulatory Relief for Renewables

Although Trump deregulated oil and gas, the administration maintained federal subsidies for solar and wind. The article links to a Wall Street Journal piece explaining how the Production Tax Credit (PTC) and Investment Tax Credit (ITC) remained intact, giving renewable projects a financial edge over fossil fuels.

c. Corporate ESG Mandates

Many large corporations set net‑zero goals (e.g., Microsoft, Walmart, and IKEA). The article references an Inside Climate article that documents how corporate ESG commitments have translated into increased demand for clean‑energy assets—pushing equity valuations upward.

d. The Pandemic Pivot

COVID‑19 accelerated the transition to remote work, boosting demand for renewable‑powered data centers. The article cites a Financial Times interview with a solar‑energy CEO who noted a 40 % rise in utility‑scale solar contracts in 2020.

3. Representative Stocks & Their Performance

The article provides a table of the S&P 500 Clean‑Energy Index top 10 holdings, confirming the pre‑eminence of solar and wind companies in the portfolio.

4. What Happens When Trump Leaves the Stage?

Biden’s Energy Vision

The article references a Reuters piece that outlines President Biden’s new energy roadmap: re‑entry into the Paris Accord, stricter emissions standards, and the Infrastructure Investment and Jobs Act that earmarks $73 B for clean‑energy projects. Investors appear optimistic, as evidenced by the Clean Energy Index’s continued upward momentum.

Potential Risks

However, the article cautions that the Oil & Gas sector may experience a “regime shift” with tighter carbon pricing under Biden. That could create a “portfolio re‑allocation” risk, where clean‑energy investors might have to decide whether to “stay in” or shift to more ESG‑compliant fossil‑fuel alternatives like natural gas.

5. Bottom Line: “Drill Baby, Drill” Doesn’t Spell Doom for Clean Energy

While the Trump administration’s “drill‑baby‑drill” policy signaled a clear tilt toward fossil fuels, clean‑energy equities have largely weathered—and indeed capitalized on—the resulting policy landscape. Lower capital costs, maintained subsidies, corporate ESG commitments, and a pandemic‑driven shift to renewable infrastructure have combined to produce a robust return stream for clean‑energy investors.

The article’s final recommendation is cautious but optimistic: “Clean‑energy stocks have proven resilient during policy volatility. Diversifying across solar, wind, battery, and EV segments is a prudent strategy for investors seeking long‑term sustainable growth.”

Key External Resources Cited

1. Bloomberg – Clean Energy Index data and falling capital costs.
2. Wall Street Journal – Federal subsidies for renewable projects.
3. Inside Climate – Corporate ESG commitments.
4. Financial Times – Pandemic pivot to renewable data centers.
5. Reuters – Biden’s clean‑energy roadmap.
6. S&P Dow Jones Indices – Clean Energy Index constituents.

These links provide additional depth and corroborate the trends highlighted in the Seeking Alpha analysis.

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