Solar stocks to watch: First Solar, Brookfield, Enphase, NextEra, and Canadian Solar—well-positioned for the global energy transition.
Sectors & Industries
September 28, 2024
As the world continues its transition toward cleaner energy sources, the solar energy sector has become one of the most compelling opportunities for long-term investors. Solar energy stocks are expected to play a critical role in the global effort to decarbonize economies. Here’s a detailed look at the best solar energy stocks.
Overview: First Solar specializes in manufacturing advanced thin-film solar panels. These panels have proven more efficient in less-than-ideal conditions, such as low light and hot weather, compared to silicon-based panels. The company has an impressive backlog of 75.9 gigawatts (GW) of bookings extending through 2030. This positions First Solar to capitalize on the accelerating demand for solar infrastructure globally.
Overview: Brookfield Renewable is a diversified renewable energy company that operates wind, solar, hydroelectric, and energy storage assets. With solar expected to comprise the majority of its production capacity within the next decade, BEP is poised for long-term growth. It has also made strategic acquisitions to increase its presence in the solar energy sector, including a majority stake in Neoen.
Overview: Enphase Energy is a leader in microinverter technology that converts solar energy from direct current (DC) to alternating current (AC) for homes and businesses. The company also provides battery storage and electric vehicle (EV) chargers. Enphase has a massive addressable market, estimated at $25.4 billion by 2025, driven by its innovative technologies.
Overview: NextEra is the largest renewable energy producer in the U.S. and operates one of the most extensive wind and solar power portfolios globally. The company invests billions in clean energy and continues to be a leader in renewable power generation.
Overview: Canadian Solar is one of the largest solar energy companies globally. It manufactures solar photovoltaic modules and provides energy solutions. With operations in over 160 countries, Canadian Solar is a key player in the global solar industry and continues to expand its footprint.
The top solar stocks in 2024 include First Solar, Brookfield Renewable Partners, Enphase Energy, and NextEra Energy. These companies lead the sector due to their innovative technologies and strong financial performance.
Solar energy stocks provide exposure to a rapidly growing sector that is essential for the global transition to clean energy. Solar power is expected to play a critical role in reducing carbon emissions and meeting energy demands sustainably.
Yes, many solar energy companies are profitable, but the profitability can vary. Companies like First Solar and Brookfield Renewable Partners are delivering strong financial results, while others are still scaling their operations.
The solar energy industry is expected to grow significantly as global investments in clean energy increase. Governments worldwide are setting ambitious renewable energy targets, which creates a favorable environment for solar companies to thrive.
Investors should evaluate solar energy stocks by considering the company’s revenue growth, earnings growth, profit margins, P/E ratios, and overall market position in the renewable energy sector.
The amount you can save by going solar depends on several factors, including the size of your solar system, your local energy rates, and available tax credits or incentives. On average, most homeowners can save between 10% to 30% on their electricity bills with solar panels. Additionally, federal tax incentives, such as the 30% tax credit, can significantly reduce upfront costs, shortening the payback period and increasing long-term savings. Some homeowners can recoup their investment within 7-12 years, after which energy savings turn into profit.
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