Renewable energy stocks were some of the biggest winners in 2020. But the upward momentum wasn’t able to continue in 2021. In 2022, things are even more challenging.

Late last week, reports suggested that Sen. Joe Manchin will not be supporting his party’s economic package that includes new spending on climate measures.

Why does that matter? Well, in a 50-50 Senate with a united Republican opposition, Democrats need the West Virginia senator’s vote to move the package forward.

“Political headlines are of no value to the millions of Americans struggling to afford groceries and gas as inflation soars to 9.1%,” Manchin’s spokesperson tells NBC News.

“Senator Manchin believes it’s time for leaders to put political agendas aside, reevaluate and adjust to the economic realities the country faces to avoid taking steps that add fuel to the inflation fire.”

The news has sent some waves across the renewable energy sector.

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Solar stocks bloodbath

Solar stocks took a big hit.

Late last week, First Solar plunged 8.1%, Sunrun dropped 6.4%, Sunnova Energy International fell 5.0%, while SunPower was down 3.4%.

The Invesco Solar ETF (TAN) tumbled as much as 7% at one point.

And it’s not like solar companies were hot commodities to begin with. While the sector has rebounded a bit over the past week, the four companies mentioned above are all down significantly year to date.

But not everyone is giving up on this investing theme.

“Manchin’s decision impairs the ability for the U.S. to achieve President Biden’s goal to reduce U.S. greenhouse gas emissions 50% to 52% below 2005 levels by 2030,” investment bank Cowen writes in a note to clients.

“Despite the disappointing news, the economic rationale for the shift toward renewable power is increasingly compelling and keeps us constructive on the group.”

If you are looking for contrarian ideas, these beaten-down solar stocks – alongside other renewable energy names – could be worth a look.

For those who don’t want to pick individual winners and losers, ETFs like TAN, the First Trust Global Wind Energy ETF (FAN), and the iShares Global Clean Energy ETF (ICLN) would provide a good starting point for further research.

Time to revisit coal?

Climate advocates point out that Manchin has longtime ties to the coal industry.