Solar stocks, and renewable energy companies in general, have not yet reached the critical mass at which wide utilization is inevitable, in contrast to the electric vehicle market, which has now gained pace. However, if patient investors choose the proper stocks, the potential of solar energy could one day result in large investment returns, particularly if supportive legislation gives the sector a boost.
Here Are the Top 5 Solar Stocks that Made Our List
Solarrun Inc. (RUN)
Sunrun is worth a look for individuals interested in exposure to the space because it is the largest solar company in terms of panel installation. In 2020, the business bought out Vivint, its biggest rival, solidifying Sunrun’s position as the top installer. Rather than purchasing their panels entirely, the vast majority of Sunrun’s clients choose to lease them from the company. The stock has increased 15% so far in 2023, and the 83 price-to-earnings ratio raises the possibility that it is overpriced. Analysts, on the other hand, give the company a “buy” rating and forecast a 64% return over the following 12 months.
Company First Solar (FSLR)
One of the few solar stocks, First Solar, doesn’t use polysilicon to make its panels, which helps it escape some of the supply chain problems that are currently hitting its rivals. According to U.S. News, First Solar uses cadmium-telluride technology, which allows it to bypass problems related to the Xinjiang region of China. World Report News. Max Slee, a portfolio manager for Ecofin who was cited in the U.S. According to the news, these characteristics indicate that “we would expect First Solar to increase worldwide solar panel market share and in some locations command a price premium to more conventional crystalline silicon competitors.”
Inc. SolarEdge Technologies (SEDG)
The industry’s bane has long been solar storage. Despite the exponential growth of solar panel technology, storing the generated energy becomes a challenge. One business attempting to address that issue is SolarEdge Technologies, which offers both conventional solar services and battery storage. cited in the U.S. According to Max Slee, portfolio manager at Ecofin, News & World Report, “in-house battery cell manufacturing should generate strong earnings growth” for the business.
Energy Phase Inc. (ENPH)
Given that its sales and profits are already expanding quickly, Enphase Energy is one of the most promising solar companies for many investors. The company is supported by analysts, who have given it a consensus recommendation of “buy” and a 12-month price target of $300.21, which is almost 35% higher than its closing price of $222.93 on February 3. The business offers a comprehensive home solar solution that combines the production of solar energy with its storage on a single platform. Enphase Energy saw a 57% increase in 2022, a challenging year for the stock market.
Sun Power Corp. (SPWR)
Solar panel installer and financier SunPower sells and installs solar energy systems for homes. In the business’s Q3 2022 results, it claimed record earnings and revenue. When the company purchased Blue Raven Solar in 2021, its CEO, Peter Faricy, declared that the company was “doubling down on residential expansion.” Additionally, CNET ranked it the “greatest solar firm overall.”
Final Take When Investing in Solar Stocks
Although it is likely that the solar stocks industry will take some time before it is widely adopted, this could be a wonderful chance for investors who have the patience and risk tolerance to wait for the finest firms to emerge.