SAN FRANCISCO (MarketWatch) — Solar stocks have been caught up in the selloff created by lower oil prices, but some on Wall Street believe a buying opportunity is knocking.

Crude has fallen about 25% since September, roughly mirroring the decline in solar stocks in the same period.

oil_and_solar

The perception is that low oil prices will lower demand for renewable energy, pressuring stocks in the sector. Even Tesla Motors Inc. TSLA, +0.41% stock was caught up in the selling this week. Read: Tesla’s stock extends drop below key chart line

Ignore the fact that solar fundamentals are much more connected to government policies and to the price of natural gas, which powers most of the electricity consumed in the U.S., or the price of coal, electricity’s fuel of choice in many parts of the world. Analysts do not expect oil’s price slump to have any effect on solar demand.

“An oil-driven pullback is a totally irrational reaction that offers a buying opportunity. With oil prices near four-year lows, we have occasionally been hearing the question: What impact will this have on the solar space? The short answer is: Fundamentally zero,” analysts at Raymond James said in a note.

All solar companies are insulated from oil-price volatility, but U.S. residential solar installers such as SolarCity Corp. SCTY, -2.85% and Vivint Solar Inc. VSLR, -1.32% are even more insulated, analysts at Deutsche Bank said in a research report.

U.S. retail electricity prices are not likely to fall any time soon, financing deals for home solar-power systems are improving, and the companies are making inroads in more states, they said.

That brings us to SunEdison Inc. US:SUNE and SunPower Corp. SPWR, -0.94% , the analysts said.

SunEdison is one of the pioneers in the spinoff of solar-power projects, known in the industry as yieldcos, and is readying a second yieldco to debut on markets next year. SunPower has said it would make a decision whether to form a yieldco in 2015.