Best Solar Stocks

Investors face uncertainty in ways not seen since the financial crisis. The coronavirus crisis has caused millions of jobs to evaporate, placing many people in a struggle just to pay rent or buy food. Solar energy firms had been steadily rising before the virus hit, but gains were wiped out along with the rest in the market flush. Solar energy is undeniably a part of our future and the market is now trading at a discount. Here are a few solar companies with bright outlooks. Literally and figuratively.

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Contributor, Benzinga
April 18, 2024

Sunlight Financial Holdings Inc Ordinary Shares - Class A (OTC:SUNL)

Sunlight Financial Holdings Inc is a technology-enabled point-of-sale finance company. It partners with contractors nationwide to provide homeowners with financing for the installation of residential solar systems and other home improvements. Its technology and deep credit expertise simplify and streamline consumer finance, ensuring a fast and frictionless process for both contractors and homeowners.

$0.25
0[0.00%]
Last update: 3:58PM (Delayed 15-Minutes)
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Vol / Avg.0 / -Mkt Cap-
Day Range- - -52 Wk Range0.192 - 14.400

SunPower (NASDAQ:SPWR)

SunPower is a leading solar technology and energy services provider that offers fully integrated solar, storage, and home energy solutions to customers primarily in the United States and Canada through an array of hardware, software, and financing options and smart energy solutions. The company’s sales channels include a network of both installing and noninstalling dealers and resellers that operate in residential and commercial markets as well as a group of in-house sales teams in each segment engaged in direct sales to end customers. SunPower is a majority-owned subsidiary of TotalEnergies Solar.

$2.27
0.01[0.44%]
Last update: 4:52AM (Delayed 15-Minutes)
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Vol / Avg.176.000 / 6.862MMkt Cap398.333M
Day Range- - -52 Wk Range2.210 - 14.735

Brookfield Renewable (NYSE:BEPC)

Brookfield Renewable is a globally diversified multitechnology owner and operator of clean energy assets. The company’s portfolio consists of hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia and totals approximately 21,000 megawatts of installed capacity. Brookfield Renewable invests in assets directly as well as with institutional partners and joint venture partners and through other arrangements. The company offers two separate listings for investors: Brookfield Renewable Partners LP (BEP) and Brookfield Renewable Corp. (BEPC).

$22.16
0[0.00%]
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Vol / Avg.8.000 / 1.072MMkt Cap3.981B
Day Range- - -52 Wk Range21.350 - 36.160

First Solar (NASDAQ:FSLR)

First Solar designs and manufactures solar photovoltaic panels, modules, and systems for use in utility-scale development projects. The company’s solar modules use cadmium telluride to convert sunlight into electricity. This is commonly called thin-film technology. First Solar is the world’s largest thin-film solar module manufacturer. It has production lines in Vietnam, Malaysia, and Ohio.

$176.00
1.71[0.98%]
Last update: 4:00AM (Delayed 15-Minutes)
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Vol / Avg.2.396K / 2.144MMkt Cap18.839B
Day Range- - -52 Wk Range129.215 - 232.000

JinkoSolar Holding Co (NYSE:JKS)

JinkoSolar is among the largest and most innovative solar module manufacturers in the world. The solar company has 9 production facilities globally and 14 overseas subsidiaries. It distributes its solar products to customers in the U.S., China, Japan, Germany, the U.K., Chile, India and other countries. JinkoSolar has an integrated annual capacity of 20 GW for mono wafers, 11 GW for solar cells and 25 GW for solar modules.

The solar stock has a market cap of $2.8 billion and has an EPS of $2.92. It has high liquidity with an average daily trade volume of 8 million shares. JinkoSolar generated revenue of $4.2 billion in 2019.

$21.50
-0.16[-0.74%]
Last update: 7:54PM (Delayed 15-Minutes)
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Vol / Avg.0 / 915.574KMkt Cap1.066B
Day Range- - -52 Wk Range21.060 - 50.595

SunHydrogen (OTCQB:HYSR)

Formerly known as Hypersolar, incorporated in 2009 and headquartered in Santa Barbara, California, SunHydrogen, Inc. engages in the development and marketing of solar-powered nanoparticle systems that mimics photosynthesis to separate hydrogen from water.

$0.015
0.001[7.45%]
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Renewable energy has become a major theme for forward-looking investors and several different niches within the energy sector are looking to enhance it. Water, wind and solar power are the biggest potential sources, all with their various pros and cons. But solar power is front and center in the renewable energy market thanks to the companies producing it and the numerous ways it can be leveraged by consumers. Of course, saving the world takes time and investors aren’t known to be patient. Today, we’ll look at 5 solar stocks that could make waves in 2022.

Quick Look at the Best Solar Stocks:

Overview: Solar Stocks

Solar power is a clean and potentially limitless energy source and many companies have attempted to harness it. Solar power isn’t a single technology, either.  Energy from the sun is turned into power through 3 different methods:

  • Photovoltaics
  • Solar heating and cooling (SHC) 
  • Concentrating solar power (CSP)

When discussing solar energy, most people are talking about photovoltaic solar systems, which convert sunlight into energy through the semiconductors lining the inside of solar panels. Concentrating solar power and solar heating and cooling systems actually use the sun’s thermal energy to create power. CSP and SHC systems are often implemented to heat public pools or provide hot water to residences.

Despite the potential, problems still exist when it comes to implementing solar energy systems. The sun could reliably rise and set at specific times, but weather is about as trustworthy as the Smoking Man from the X-Files. A long period of inclement weather could wreak havoc on solar energy systems and storage systems are a must for any solar energy application. Daylight hours need to count for solar systems to reach max efficiency and weather often just does not want to cooperate.

Then there’s the cost. For the average homeowner, installing a solar energy system will cost around $14,000 to get up and running and that’s after factoring in the federal tax credit. While the long-term energy savings could make this a worthy investment, most homeowners simply don’t have $14,000 in the budget to switch to a new electricity source. Some states have offered incentives, and there are companies that finance these installations without changing the user’s energy bills, but financing requires a high credit score and pre-approval from the lender used by the installer.

Best Online Brokers for Solar Stocks

Before investing in solar energy companies, you’ll need a broker to supply you with shares. If you don’t have a broker, you’re in luck — there’s never been a better time to open an account. Almost all major brokerages have erased commissions on stock and ETF trading, plus many offer sign-up bonuses like deposit matching or free stocks. 

Your experience level will determine which broker is best. If you want to trade based on technical analysis and buy/sell signals, you won’t want a broker that only offers basic line charts. And of course, be sure your broker has shares of the solar companies you wish to invest in.

Features to Look for in Solar Stocks

Solar energy stocks haven’t been terrific investments in the last few years. Despite advances in efficiency and promotion from governments around the world, most solar stocks languished behind the S&P 500 during the decade-long bull market. There’s little doubt that solar power will be a big part of our lives in the coming years, but how long will investors be willing to wait to see more prevalent adoption? 

When looking for solar companies to invest in, always keep a few key features in mind.

  • Debt levels: Solar energy is expensive. Panels are expensive to make, installations are expensive to perform and storage systems are expensive to maintain. These costs will likely decline in the future as the technology continues to improve, but right now solar energy firms require extensive amounts of capital. Be sure you aren’t investing in a company with an unhealthy debt level.
  • Cash flow consistency: Additionally, solar energy companies require a ton of capital to keep operations running smoothly. Much like its peers in the oil and gas business, the equipment needed to manufacture, install and maintain solar systems is costly. Even the solar panels themselves don’t come cheap! To make sure you’re investing in the best solar stocks, keep an eye on their cash flows. Cash flow and debt often go hand-in-hand here.
  • Management that believes: If you’re in it for the money, you’re in the wrong sector. Solar energy firms have an uphill battle to climb thanks to a familiar foe — inertia. Fossil fuels remain the dominant source of global energy and replacing them would require massive infrastructure changes. The management team in a solar energy company must have the longest view in the room because adoption will be a slow and arduous process. This is not the industry for corner-cutting just to make a buck.

Where Do Solar Stocks Fit in Your Portfolio?

Solar energy companies are attempting to serve 2 different customer bases at once. On one hand, solar power is a terrific public good that would greatly reduce fossil fuel consumption and make for a healthier environment. On the other hand, solar power systems are expensive to build and maintain and companies in the sector are often riddled with debt. 

When adding solar stocks to your portfolio, be sure to consider the pros and cons of both the individual companies and the industry as a whole. Just because a company is attempting to do good doesn’t mean it’s a well-run firm. Always thoroughly vet solar companies before investing and have a plan for exiting a speculative trade.

Q

Is solar a good stock sector?

A

Solar stocks ranks 159 out of 248 and is expected to underperform in the market for the next three to six months.

 

 

Q

Why are solar shares dropping?

A

Since Senator Joe Manchin said he would not support the Budget Reconcilliation Bill, solar shares began to drop.

Q

Is there a future in solar?

A

With the decline in fossil fuels, solar stocks will likely rise in the future.

About Dan Schmidt

Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on stocks. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.