Best Solar Energy Stocks to Buy Now

This story originally appeared on Best Stocks

The sun is the earth’s primary energy source. It has been around since life on earth began and will be here until the end of our time. The sun’s power is infinite, and it is used by nearly all living things in some way or another to survive. So why not tap into this limitless resource? Solar energy best stocks are an excellent investment for those who want to make money while helping the environment.

Sunlight is now one of the most cost-effective ways to generate electricity. Solar installations have tripled since 2010. The renewable energy industry is booming, and solar power is at the forefront. Technology has also improved a lot in recent years, and it’s now more accessible than ever before. 

More and more people are switching to solar power for their electricity needs. The demand for solar energy also leads to new technology that will make it easier for people to generate their electricity. As a result, the stocks are on the rise. 

Here’s what you should know about investing in solar energy stocks and why it’s the best stocks to buy right now.

What is Solar energy?

Energy is our top pick.
Source: Getty Images

“What is solar energy?” you may be asking. It’s a type of renewable energy that harnesses the sun’s power and converts it into electricity. Solar panels are composed of photovoltaic cells that capture sunlight, generate electricity, and change light into usable energy. Many people are interested in installing solar panels on their houses because they can save money on their utility bills with little to no maintenance. There are also many other benefits like providing clean energy for your home, reducing greenhouse gas emissions, and protecting the environment. 

The first half of the 20th century saw widespread adoption of solar techniques worldwide, particularly in areas where fossil fuels were limited or too expensive to use directly. In recent years, with high fossil fuel prices and environmental considerations driving renewables exploration and advocacy efforts, photovoltaic technology has been rapidly developing worldwide.

Nowadays, solar energy provides about 1% of all energy production. However, with recent cost reductions, solar power may contribute more than 10% of global energy demand by 2050. Solar power is second only to natural gas as an electricity source. More and more people embrace solar energy as their primary source of power because it is environmentally friendly, affordable, and accessible. 

How Does Solar Energy Distribution Work?

Solar energy is a renewable resource, meaning it can be replenished quickly. It is also emission-free and does not contribute to global warming. The only thing solar panels produce is heat which they then release into the atmosphere through convection or radiation. 

Manufacturing companies purchase silicon wafers at a low cost, cut them into thin slices, apply a photovoltaic material on one side, seal the cells together and then connect them to form panels that can generate electricity. Installers then mount the panels on roofs or other structures to provide solar power for homes, businesses, or utility grid operators.

There are several different types of solar cells:

  • Silicon
  • Monocrystalline, amorphous, cadmium telluride
  • Copper indium gallium selenide (CIGS)
  • Organic photovoltaic cells (OPV)

The solar cells themselves should be placed on a surface like glass or metal to absorb light easily. It should also be kept away from objects that might obstruct exposure to sunlight, such as trees or other buildings.

Why is Solar Energy so Important?

Fossil fuels to generate electricity has several negative impacts on the environment, including increased greenhouse gas emissions. As a result, solar energy technology is an increasingly popular alternative because it offers clean and renewable power. 

 More extreme weather, rising sea levels, and the increased frequency of natural disasters show that climate change is a considerable concern, and we need to take action. But unfortunately, many people are still hesitant to take the leap and begin transitioning from fossil fuels to renewable energy sources. It seems like a huge undertaking, with some saying it’s too expensive or complicated for them to do. But if you consider the financial benefits and social changes that solar energy can bring about, it becomes easier to understand why you should invest in solar power today.

Despite still having some resistance from companies and governments, the world gets closer to a renewable energy society each year. There are many reasons why it’s essential to invest in solar energy. It’s not just environmentally friendly, and it also saves money. The average homeowner can save around $1,000 per year when switching to solar power. 

Solar Energy is Gaining Popularity

In the past few decades, the cost of solar panels has decreased significantly, and more people are using them in their homes to generate electricity. In addition, solar energy provides clean power without any harmful emissions or byproducts.

 Nowadays, Solar systems typically pay for themselves in 7-10 years and then start saving you money every day after that! Not to mention the federal tax credit of 30% of the system cost and other state and utility incentives that make solar even more affordable. So solar energy is an excellent investment for businesses and homeowners alike! 

Solar power has also become more popular with people across different socioeconomic backgrounds. People realize that solar energy can save them money on their utility bills and help protect our environment from pollution. As solar power becomes more popular and accessible, here are some essential things to know about this clean and renewable energy source.

Why Invest in Solar Energy Stocks?

Entrepreneurs and investors have been experimenting with the technology for decades, but it wasn’t until recently that it became a viable alternative to fossil fuels. Now, solar energy is one of the fastest-growing industries in the U.S. and globally. It’s also one of the most important sources of new jobs in both developed and developing countries.

Besides, Solar energy is a multi-layered industry covering various sectors from manufacturing to sales and installation. There are many different solar technologies, each with its challenges and benefits. Solar products are typically sold by two companies: manufacturers and installers. 

 Solar energy is an excellent stock to buy now for people who want to support renewable energy without putting the environment at risk. In addition, many companies sell stock options in solar power for those who would like to invest in solar energy stocks. 

What to Know Before Investing in Solar Energy Stocks?

Investing in solar energy stocks has become popular and seems like a great way to make money. But before you jump on the bandwagon, it’s essential to know the risks involved. Solar energy stocks are in a volatile industry that is constantly changing, so it can be difficult to predict what will happen in the future. In addition, there are high costs associated with solar power development, such as installation and maintenance of the equipment.

It’s also important to note that utilities have been fighting solar power because they feel threatened by these developments. However, many countries worldwide invest in solar energy due to its benefits and endless potential for growth.

Do you want to invest in solar energy stocks? Before you do so, make sure you know these two things. 

1) When investing in solar stocks, it’s essential that you know the difference between a long-term investment and a short-term one. If you’re looking for an immediate return on your investments, solar energy is not the best choice for you. However, if you’re looking for a more sustainable and long-term investment that will provide returns over time, then this is a perfect choice. 

2) Another important thing when investing in solar stocks is understanding how the industry works. Solar energy stocks can be divided into two sectors: those who finance solar projects and those who create them. Understanding how each industry operates will help with your decision. 

Best Solar Energy Stocks to Buy Now

Barclays initiated coverage of solar stocks
Source: Getty Images

First Solar Inc. (ticker: FSLR)

Mkt Cap: $7.29 B

Trading at: $68.57

First Solar Inc. (ticker: FSLR) is an American photovoltaic company that specializes in the design, manufacture, and marketing of solar modules to produce electricity for residential, commercial, and utility-scale power plants. The Company’s main products are its photovoltaic modules that convert sunlight into electricity, used in various rooftops or power plants.

First Solar was founded in 1999 by Harold McMaster and had headquarters in Tempe, Arizona, and production facilities in Kulim, Malaysia; Frankfurt, Germany; Camarillo, California; Penang, Malaysia; Hillsboro and Beaverton, Oregon; and Albuquerque, New Mexico. First Solar has a solid track record as a developer of high-efficiency PV systems for utility-scale power plants. That is primarily due to its advanced thin-film PV module technology that allows it to create innovative solutions for efficiency challenges at different locations globally.

Sunlight Financial Holdings Inc. (SUNL)

Mkt Cap: $444.90

Trading at: $3.36

Sunlight Financial Holdings Inc. (SUNL), a finance company that provides financing for installing residential solar systems, has made quick gains in the global renewable energy market. The Company is also diversifying its financing portfolio and expanding its reach by partnering with various companies. 

As more people are becoming aware of their carbon footprint, one of the solutions to combat climate change is to invest in renewable energy sources. Sunlight Financial Holdings Inc. (SUNL) offers homeowners the switch from electricity generated by fossil fuels to solar power.

JinkoSolar Holding Co. Ltd. (JKS)

Mkt Cap: $2.01 B

Trading at: $44.00

JinkoSolar Holding Co., Ltd. (JKS) is a solar module supplier in China that has been listed on the New York Stock Exchange since 2010. It produces photovoltaic (PV) cells and PV modules and is one of the world’s largest independent solar power companies. 

Jinko Solar specializes in designing, manufacturing, and selling high-performance semiconductor devices in solar products and silicon wafers for semiconductor applications. Due to its strong global presence, Jinko Solar is recognized as a pioneer of international solar photovoltaic development. In recent years, it has increased its market share steadily while expanding its international presence all over the world to meet customer needs, generating an annual revenue of approximately US$5 billion.

Maxeon Solar Technologies Ltd. (MAXN)

Mkt Cap: $391.01 M

Trading at: $8.84

Maxeon Solar Technologies Ltd. (MAXN) is most known for its work in the solar power industry, especially the manufacturing of silicon photovoltaic modules (the foundation of many solar photovoltaic systems). The Company has production facilities in Germany, Japan, and China, with offices in the United States, Japan, China, and Europe.

They are constantly looking to improve their products, so they offer a warranty that is 30% more than the industry average. This Company produces quality solar products at competitive prices. It also provides project development and engineering, installation, monitoring, and maintenance services for solar power systems. 

Sunrun Inc. (RUN)

Mkt Cap: $4.46 B

Trading at: $21.56

Sunrun is an American company based in San Francisco specializing in residential solar power. Sunrun offers professionally installed, clean energy systems for homes and businesses. Founded by Lynn Jurich and Ed Fenster, Sunrun was the first Company of its kind to offer solar as a service rather than a product. The Company installs and maintains customers’ solar panels; homeowners pay Sunrun a monthly fee for the service, with no up-front costs or long-term commitments. 

Sunrun currently operates in 18 states, including Washington D.C. and Ontario. Sunrun is backed by investors such as Google Ventures, Fidelity Investments, BlackRock, First Solar, and Brightpath Capital Partners. It trades on the NASDAQ under the ticker symbol “RUN.” the Company is presently the second-largest solar installer in the United States.

SolarEdge Technologies Inc. (SEDG)

Mkt Cap: $13.55 B

Trading at: $257.91

SolarEdge Technologies Inc. (SEDG) is a leading provider of monitoring systems for photovoltaic (PV) power plants, producing and distributing solar energy by converting sunlight into electricity. It was founded in 

This Company has a wide range of products that allow customers to monitor their PV installations’ performance in real-time and get alerts when the system is not functioning as expected. That includes inverters, power optimizers, microinverters, and electrical connectors. In addition, SolarEdge’s advanced monitoring platform provides customers with insights about how their PV systems are performing and enable them to interact with their PV systems remotely. 

The Company strives to deliver innovation and data-driven intelligence for the global solar industry through its technical expertise in monitoring, engineering, operations management software, and data analytics.

SunPower Corp. (SPWR)

Mkt Cap: $2.57 B

Trading at: $15.69

SunPower Corp. (SPWR) is a solar panel manufacturer and developer of related products and services. The Company offers a range of photovoltaic (PV) products in North America and Europe, including solar panels, inverters, mounting systems, and maintenance services. SunPower’s global operations include seven regions of the United States, including Arizona, California, Colorado, Florida, Maryland, and Northern California. 

The Company’s products are primarily sold to residential customers in North America and commercial and utility-scale customers worldwide that use them to meet their own electricity needs or provide clean energy for their communities. The Company also derives revenue from providing services for its solar power plants on a long-term basis through power purchase agreements with third parties that offer long-term guarantees to purchase electricity generated by these plants at prices higher than current market rates.

Brookfield Renewable (BEPC)

Mkt cap: $2.71 B

Trading at: $15.69

Brookfield Renewable Partners LP (TSX: BEP.UN) is a public limited partnership that invests in renewable energy and powers infrastructure assets, including wind and solar energy farms, as well as hydroelectric generation and onshore and offshore transmission networks. The Company owns and operates an interest in more than 12,812 megawatts of renewable power generation capacity.

Brookfield Renewable Partners LP acquires ownership interests in two types of renewable power projects: contracted projects, which represent the majority of the Company’s portfolio because they are long-term agreements to deliver renewable electricity; and merchant projects, which are projects that generate electricity from variable sources such as wind power or solar photovoltaic cells.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)

Mkt cap: $3.74 B

Trading at: $44.14

Environmental protection is a corporate priority for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI). HASI aims to be a sustainable infrastructure investor and advisor that achieves superior returns by protecting natural resources and the environment. HASI invests in public infrastructure projects, including utilities, transportation, and other infrastructure, focusing on sustainability.

The Company also invests in green energy production, wind power, and solar power in the United States and abroad. These investments have been seen as an economic opportunity to create jobs and generate revenue. In addition, these investments have helped protect our environment by reducing air pollution and greenhouse gas emissions from fossil fuels. The importance of environmental protection is one of the reasons why HASI has been successful for so many years. 

Daqo New Energy Corp. (DQ)

Mkt cap: $3.74 B

Trading at: $44.14

Daqo New Energy Corp (DQ) is a Chinese clean energy company. The Company’s products include photovoltaic modules, solar cells, wafers, and other solar products. The Company is a vertically integrated monocrystalline silicon and polysilicon manufacturer in China. The Company has two operations, one located in Chopping and one in Xinjiang, China. It also produces and sells other solar-related products to its customers.

 In addition, Its products are used primarily in the power generation sector, with an emphasis on distributed solar power generation projects at downstream customers such as grid-connected households, commercial buildings, industrial parks, and communities.

ReneSola Ltd. (SOL)

Mkt cap: $387.80 M

Trading at: $5.56

ReneSola Ltd. (NYSE: SOL) is the world’s largest producer of monocrystalline silicon wafers, large-sized monocrystalline solar cells, and a prominent global maker of solar wafers and solar cells. ReneSola designs, builds, operates, and sells solar power projects in the United States and Europe.

 The Company offers various solar products and services, such as photovoltaic modules and cells, inverters, solar energy solutions, and other related products. It also engages in the development of utility-scale solar power projects. ReneSola strives to make solar power affordable and available to everyone. 

Azure Power Global Ltd. (AZRE)

Mkt cap: $719.25 M

Trading at: $14.92

Azure Power Global Ltd. (NYSE: AZRE) is a globally integrated developer of projects that generate electricity using renewable energy sources such as solar and wind power. In India and other countries in Asia, Africa, the Middle East, and Europe, the Company has created approximately 7.4 gigawatts of solar and wind generating plants. Azure Power’s business plan is to build projects that use renewable energy sources like solar and wind electricity, then sell the power created to clients under long-term contracts. Azure Power also offers renewable energy credits (RECs), reflecting the environmental benefits of one megawatt-hour renewable energy output.

Azure Power has developed various renewable technologies, including photovoltaic (PV), solar thermal, onshore wind, offshore wind, and hydroelectricity. The Company actively grows large-scale solar PV plants with up to 600 MWp in India, exploring onshore wind turbine technology across Africa.

Enphase Energy Inc. (ENPH)

Mkt cap: $18.80 B

Trading at: $140.35 

Enphase Energy, Inc. is a solar power company based in Fremont, California. It designs, manufactures, sells, and installs solar microinverters worldwide solar PV systems. Enphase Energy, Inc. was founded in 2006 and gained other offices worldwide. The Company’s products are sold in North America, Europe, and Australia and offer a range of benefits to solar customers, including reduced or eliminated upfront costs, simplified design and installation process, superior in-service performance, increased return on investment (ROI), the improved resale value of the property, and reduced carbon.

The Company has managed to stay profitable by focusing on residential products that are easy to install and don’t require special skills like welding, carpentry, and electrical work. Enphase Energy also markets its technology through partnerships with other companies worldwide. With international markets opening up and solar reversing nationwide, expect this Company to have a promising future!

Atlantica Sustainable Infrastructure PLC (AY)

Mkt cap: $3.52 B

Trading at: $31.72

Atlantica Sustainable Infrastructure PLC (AY) is a renewable energy solutions provider. The Company is a developer, operator, and investor in sustainable infrastructure projects focusing on renewable energy. It has developed several wind farms in Africa and Asia and solar power plants in China and the United Arab Emirates. It also grows cogeneration plants such as a gas-fired plant at its flagship project, the Shams 1 Solar Power Plant in Abu Dhabi.

Atlantica has invested over $1 billion to develop these sustainable infrastructure projects by buying stakes from developers who have completed their assignments or require additional funding to complete construction.

Shoals Technologies Group, Inc. (NASDAQ: SHLS) 

Mkt cap: $2.07 B

Trading at: $12.42

Shoals Technologies Group, Inc. (NASDAQ: SHLS) provides electrical balance of system (EBOS) and energy storage solutions for utility-scale solar power plants in the United States. The Company’s EBOS products include a range of electrical equipment, such as switchboards, transformers, inverters/inverter converters, and control systems used to connect solar photovoltaic (PV) plants to the grid. 

The EBOS market is growing as electric distribution networks are being built to meet electricity demand and renewable energy integration.

Shoals offer a range of products with a large customer base spanning multiple geographic regions, including the Americas, Europe, and Asia.

Sunnova Energy International Inc. (NOVA)

Mkt cap: $1.78 B

Trading at: $15.87

Sunnova Energy International, Inc. (NYSE: SUN) is one of the largest residential solar energy services providers in the United States. Sunnova’s mission is to accelerate the adoption of solar, provide cleaner and more affordable energy and deliver a better customer experience by seamlessly integrating its customer-centric business model with state-of-the-art technology.

Today, Sunnova continues to advance a customer-centric business model with disruptive innovations like its recently announced Solar Now program that enables homeowners who live in apartment communities or condos to go solar without a long-term contract. It also offers 24/7 online customer service by phone. It lives to chat, and an experienced and highly knowledgeable sales team is available seven days a week to help customers navigate their options.

Bottom Line

Solar Stocks
Fonte: Getty Images

The world is looking for a new way to power homes, businesses, and communities. We’ve reached the point where we must rethink how we generate power and use it. Solar energy is one viable option that can be used in many different ways. 

As the demand for renewable energy grows, many companies are looking at investing in solar energy. That can be both profitable and beneficial to the environment. As a result, many companies turn to solar energy stocks as sustainable investments with long-term returns.

With more countries adopting solar power and more solar energy companies emerging, this can be seen as a great investment opportunity that could help you make money in the long term. Therefore, solar energy is one of the best stocks to buy now.

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