Solar Energy Heating Up: 3 Key Investment Areas For 2026

This October, renewable energy generation globally surpassed coal for the first time on record. Solar energy has played a major hand here. In the US alone, 84% of all new electricity generation capacity added to the grid in 2024 was solar, officially making it the fastest-growing source of power. 

This trend is only set to continue, creating new investment opportunities as a result. Up until recently, investment opportunities in solar were largely tied to the development of massive, utility-scale solar farms. However, continued demand coupled with new tech innovations have opened up solar adoption. 

From commercial rooftop space and community solar projects to growth in emerging markets, here are three key spaces within solar that offer potential investment opportunities. 

Local solar projects offer fast returns 

One of the biggest advantages for any investor is speed. Megasites can take years to build, and like most large development projects, they often suffer from unexpected delays due to clearing permits, opposing parties, or constrained supply chains.

In contrast, community solar projects in the U.S. average 12-18 months from financing to operation, according to the CCSA. This quicker turnaround is achieved by utilizing existing infrastructure in the form of fallowed farmland, rooftops, and underused industrial sites. The coalition highlights several community projects underway across the U.S., predicted to generate billions in economic investment, impact, and jobs.

"Community solar is the only clean energy solution that can keep pace with this demand spike while delivering near-term affordability and economic stimulus," said Jeff Cramer, CEO of the Coalition for Community Solar Access (CCSA)

Commercial rooftops are another place where fast returns can be found. They remain one of the most underutilized assets in energy but new tech innovations are helping to uncover viable leads intelligently. As a result, developers and investors are starting to see that "solar pockets" have the potential to yield faster returns, lower volatility, and resilient demand.

In 2024, Solar Landscape secured a record $847 million to fund more than 200 rooftop projects across the U.S. That same year, it leased 40 million square feet of commercial rooftop space for solar installations, adding to a portfolio that now includes partnerships with more than 80 real estate owners controlling over 2 billion square feet in the country.

"The surge in U.S. grid energy demand makes commercial rooftops ideal for solar," said Shaun Keegan, CEO and Co-Founder of Solar Landscape, in a statement.

Yet measuring the impact of these solar installations will also be key, as sustainability reporting becomes mandatory in an increasing number of countries worldwide. 

"As ESG expectations evolve, organizations are navigating a more interconnected and dynamic sustainability landscape. From multi-jurisdictional requirements to complex supply chains, the need for real-time insights, automation, and traceability has never been greater," explained Jitesh Shetty, CEO and Founder of Credibl. 

Real-time data on solar performance powered by AI innovations will be a key part of the story in the coming years. 

Emerging markets create new growth runways for solar

Building a diversified portfolio is a core way to mitigate investment risk for any industry and the same is true for solar. Here, higher risk in solar investments can come as a result of exaggerated projections that paint energy production predictions and financial rewards as too optimistic. To combat this, investors can distribute risk across solar pockets and reduce exposure through geographies, customer types, and regulatory environments. 

Emerging markets that at an earlier stage of solar adoption promise to build stable growth runways for investors. 

Africa, for example, has seen an influx of solar projects, both small and large, powered through government incentives and international investor partnerships, with China gaining a stronghold in the region. Even so, the continent has more than 60% of the world’s solar potential, but less than 3% of global energy investments. 

Daniel Domingues, CEO of Planno, has witnessed increased developer demand in Africa through his company's platform, an AI-powered prospecting tool that leverages satellite imagery and AI to identify prime roof real estate for solar.

“Africa is becoming a case study in how market pressure, community demand, and technology can align to unlock new growth in solar," said Domingues. "Developers are leveraging new tools to not only find ideal spaces for these projects, but also to streamline the process from start to finish. That also translates to giving investors the confidence to jump on board. It’s really been driving growth in the right direction.”

"Africa is a paradox of potential and neglect," said Claver Gatete, Executive Secretary of the UN Economic Commission for Africa, at the High-Level Political Forum in New York. Despite vast solar, wind, hydro, and geothermal resources, the continent is still bypassed by international investment.

Several African countries have introduced incentives to attract foreign capital, but the Executive Secretary believes more can be done. 

"We need a new deal on energy finance, one that supports innovation, strengthens grids, and builds clean energy industries that work for both people and the planet," Gatete urged.

While momentum is building in this sector, distributed solar and rooftop projects receive smaller funding in comparison to utility-scale projects. 

For investors, a diversified portfolio representing a mixture of both projects across markets not only smooths performance but also reduces exposure to single-project delays, overly optimistic projections, and local electricity prices. That translates to steadier returns and fewer surprises. 

The value of high-impact solar applications

Although energy is a critical resource for everyone, a loss of power can be detrimental for certain services, like hospitals, cold storage facilities, and EV hubs. 

Direct solar in the form of rooftop solutions ensures that core infrastructure can ensure a resilient supply of energy, to mitigate or eliminate downtime during extreme weather events and blackouts. 

Here, the value of solar goes far beyond lower monthly bills. A solar installation that doubles as a backup power for a logistics hub or data center, which are also growing in demand, is both a cost-saving energy move and an infrastructure hedge. 

A solar installation that doubles as a backup power for a logistics hub or data center, which are also growing in demand, is both a cost-saving energy move and an infrastructure hedge. 

Sometimes, in cases when competitors are forced to shut down. It's a reliability that wasn't readily available, with insurers now factoring that resilience into risk assessments and premiums. 

Canadian earth observation solution provider, CATALYST, in partnership with global insurance group Howden, is using satellite-based earth technology to develop a system for insurers to monitor land change and quantify biodiversity risk at scale. 

"Financing new projects and insuring existing installations both stand to benefit from the clarity that unbiased satellite earth observation provides. Satellite imagery is increasingly ubiquitous and is benefiting from the rapid development of low-latency processing to derive insights that can be delivered in a business-friendly manner," said Kevin Jones, Chief Product Officer at CATALYST, who has since received funding from the U.K. space agency to further this new commercial space application.

As more companies sign long-term power purchase agreements to lock in predictable rates and secure resilience, rooftop solar installations offer investors both stability and strategic exposure in this growing market.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.