Solar energy has gained popularity due to an increased concern about climate change, government stimulus packages, and subsidies for renewable energy sources. As a result, solar energy has grown at an average annual rate of 42% in the past decade since it is clean, emissions-free, and renewable.
This article discusses the best solar energy stocks to buy in 2022 and how to obtain them through a regulated stockbroker.
In This Guide
The 10 companies outlined below represent the overall best solar stocks to invest in right now.
You should carefully research the markets and historical data before buying stocks for the first time. Then, read our in-depth analysis before deciding which solar stocks are right for your portfolio.
Today’s world has a real concern for solar energy. Although it has been noted that the transition from fossil fuels to renewable energy has led to an increase in the market, this does not mean that you should consider all companies that operate in this sector for your portfolio.
For this reason, researching the best solar stocks for 2022 is crucial to ensuring that you are making smart investment choices. Check out the 10 solar energy companies analyzed below.
As the top solar energy stock to buy in 2022, Enphase Energy, Inc. (ENPH) is ranked first after Wells Fargo analyst Michael Blum initiated coverage with an Overweight rating on November 22 and a $313 price.
Enphase Energy, Inc. (ENPH) is a clean energy technology company based in California that provides solar solutions and home energy storage.
The company is expected to benefit from “several long-term tailwinds” in the solar market, including the continued expansion of residential and commercial solar demand, increasing battery attach rates over time, and decentralizing energy production.
Moreover, Enphase Energy, Inc. announced its third-quarter earnings on October 26. The EPS came in at $0.60, beating estimates by $0.11. Revenue was $351.52 million, up 96.93% year-over-year, beating estimates by $7.60 million.
Bruce Emery’s Greenvale Capital is one of the largest shareholders of Enphase Energy, Inc. (ENPH) as of Q3. It owns an $85.4 million stake in the company. In the third quarter, 52 hedge funds were long Enphase Energy, Inc. (ENPH), up from 44 funds the previous quarter.
75.26% of retail investor accounts lose money when trading CFDs with this provider
The solar energy stock Sunrun Inc. (RUN), a California-based provider of residential solar panels and home batteries, was one of the most popular solar energy stocks among hedge funds in the third quarter. Based on Insider Monkey’s Q3 hedge fund database, 37 funds were bullish on Sunrun Inc. (RUN). The stake value totaled $1.67 billion.
The largest shareholder in Sunrun Inc. (RUN) from the third quarter is Philippe Laffont’s Coatue Management, with 9.5 million shares worth $418.3 million.
Sunrun Inc. (RUN) reported its third-quarter results on November 4, posting a $0.11 EPS, beating estimates by $0.09. Revenue jumped by 109.17% from the prior-year quarter, reaching $438.77 million, outperforming expectations by $25.03 million.
According to BMO Capital analyst Ameet Thakkar, Sunrun Inc. (RUN)’s price target was raised on November 5 to $72 from $65, and the stock’s outlook remains Outperform.
Gordon Johnson, an analyst at GLJ Research, raised First Solar’s price target to $152.87 on November 23 from $104.41 and kept his Buy rating. According to the analyst, US solar manufacturers like First Solar, Inc. (FSLR) will benefit immensely from the Biden Administration’s $1.9 trillion Build Back Better legislation. The company will receive approximately 50% taxpayer subsidies to produce 6 gigawatts of solar capacity each year.
First Solar, Inc. (FSLR), based in Arizona, provides solar panels, utility-scale PV power plants, and support services such as construction, maintenance, and panel recycling.
In the third quarter, Michael Cowley’s Sandbar Asset Management increased its stake in First Solar, Inc. (FSLR) by 7%, holding 365,470 shares worth $34.8 million. In addition, 31 hedge funds reported owning stakes in First Solar, Inc. (FSLR) in Insider Monkey’s Q3 database, valued at $266.5 million.
A company that provides solar solutions to residential customers, Sunnova Energy International Inc. (NOVA) announced its third-quarter earnings on October 27. The company lost $0.23 per share, missing expectations by $0.06. However, revenue jumped by 37.32% year-over-year to $68.9 million, exceeding expectations by $1.41 million.
Despite “solid” Q3 results, Riley analyst Christopher Souther raised Sunnova Energy International Inc. (NOVA) to $54 from $52 and maintained a Buy rating on the stock on October 29. According to the analyst, Sunnova Energy International Inc. (NOVA)’s “demonstrated execution and bolstered balance sheet position it well to meet or exceed its 2022+ goals.” As a result, he considers the stock the best way to invest in the residential solar sector in 2022.
Sunnova Energy International Inc. (NOVA) was long by 27 hedge funds at the end of September, compared with 25 hedge funds a quarter earlier. Electron Capital Partners, owned by Jos Shaver, is the leading shareholder in Sunnova Energy International Inc. (NOVA) starting in Q3 2021, with a shareholding of $48.55 million.
The SolarEdge Technology Company manufactures inverters and power optimizers that use the sun’s energy to generate electricity. As a result, solar panels have become more efficient at converting DC power from the sun into AC electricity. As a result, the cost of a system that uses SolarEdge’s power optimizers is lower than that of one built by, for example, Enphase Energy (ENPH), and the efficiency loss is minimized.
Since SolarEdge manufactures low-cost power optimizers, it has gained market share from rivals as solar project developers focus on price. The company has also invested in developing new energy storage and energy management products and smart modules to help increase its average revenue per installation.
With a cash-rich balance sheet, SolarEdge complements its leading market position. Because of that, it has the financial flexibility to expand its manufacturing capabilities and strengthen its technological edge over competitors.
Additionally, SolarEdge has been able to expand into other smart energy markets. In addition to storage, electric vehicle (EV) charging, batteries, uninterruptible power supply (UPS) systems, EV powertrains, and grid services solutions. With these initiatives, SolarEdge is well-positioned to succeed in expanding its reach in the fast-growing clean energy sector in the years to come.
Daqo New Energy Corp. (DQ) is a Chinese company that develops and distributes monocrystalline silicon and high-purity polysilicon for solar photovoltaics.
On November 1, Roth Capital analyst Philip Shen raised the price target on Daqo New Energy Corp. (DQ) to $79 from $52 and kept a Neutral rating on the shares after the company’s Q3 earnings beat and reiterated 2021 production guidance. According to the analyst, Daqo New Energy Corp. (DQ) will experience higher earnings in 2022 due to the upward trend in poly average selling prices.
Daqo New Energy Corp. (DQ) was included in our list of the best energy stocks for 2022 after reporting solid third-quarter results on October 28. The company reported EPS of $3.84, beating estimates by $1.19. In addition, revenue increased 366.65% to $585.78 million, exceeding estimates by $37.55 million.
Plug Power may be an option that investors should consider if they are looking to invest in stocks from a newer area of renewable energy. The company focuses primarily on the development of hydrogen fuel cell systems. Ideally, they would serve to replace conventional batteries in electric-powered equipment. Two notable announcements were made by the company just last month. First, plug Power plans to grow massively on the financial front in 2022. According to Plug Power CEO Andrew Marsh, the company targets $900 million this year.
The company aims to become the world’s largest producer of green hydrogen through this move. In addition, plug Power continues to expand its footprint across global markets, having accumulated almost 370,000 square feet of manufacturing space.
In addition, the company works with some of the most well-known names in the retail industry. Amazon (NASDAQ: AMZN), Walmart (NYSE: WMT), and Home Depot (NYSE: HD) are included. Plug Power is also working with the state of New York to become a hydrogen hub. It would be included in the federal infrastructure bill signed into law in 2021. Plug Power might be able to access the $8 billion set aside by President Biden to build hydrogen hubs if all goes according to plan. Plug Power has operations in Albany, New York, making this an ideal location for the company.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is a Maryland-based company that invests in solar energy projects and sustainable infrastructure projects that support energy efficiency improvements such as heating, ventilation, air conditioning systems, lighting, and energy controls, roofs, and building shells.
The B Riley analyst Christopher Souther raised his price target on Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) to $83 from $82 and kept a Buy rating on the shares. By the end of 2021, the analyst predicts that the company’s balance sheet will grow by more than 20%, and by 2022, net investment income will rise by more than 20%. Therefore, according to him, the recent pullback is a great time to buy the stock. Thus, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is one of the best solar energy stocks in 2022.
On November 4, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) reported Q3 earnings of $0.41, as expected by analysts.
Impax Asset Management, owned by Ian Simm, has been the largest shareholder of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) since the third quarter, owning 2.18 million shares worth $116.66 million. In addition, compared to the previous quarter, 15 hedge funds were bullish on the stock in Q3.
JinkoSolar Holding Co., Ltd. (JKS) is the world’s largest manufacturer of solar panels. As one of the best solar stocks to buy for 2022, this Chinese company serves residential, industrial, and commercial utility sectors in China, the United States, Japan, United Kingdom, Germany, Brazil, the United Arab Emirates, Italy, Spain, and France, among other regions. JinkoSolar Holding Co., Ltd. is also a manufacturer of solar cells, solar wafers, and solar modules.
On November 30, JinkoSolar Holding Co., Ltd. announced its Q3 results. In the latest quarter, EPS exceeded expectations by $0.03 to come in at $0.05. In the third quarter, revenue came in at $1.33 billion, missing estimates by $62.37 million.
On December 2, CICC analyst Tao Zeng upgraded JinkoSolar Holding Co., Ltd. to Outperform from Market Perform with a $66.10 price target.
It was announced on December 2 that JinkoSolar Holding Co., Ltd. would reinforce its partnership with Aldo Solar for 2022, a leading distributor of solar energy solutions in Brazil. As a result, JinkoSolar Holding Co., Ltd. signed the largest distribution agreement outside China, where modules with 2 gigawatts of installed power will be distributed.
In the third quarter, Marshall Wallace LLP held a $12.99 million stake in JinkoSolar Holding Co., Ltd. As a whole, 10 hedge funds were long JinkoSolar Holding Co., Ltd. in Q3, up from 7 funds in Q2.
The Brookfield Asset Management company is an alternative asset manager and REIT/Real Estate Investment Manager specializing in real estate, renewable energy, infrastructure, venture capital, and private equity. The company manages public and private investment products and services for institutional and retail clients. In addition to investing its own money, it also invests capital from other investors, often in large, premier assets across various geographies and asset classes.
As a rule, the firm considers equity investments ranging between $2 million and $500 million. The investment period of the project is four years, and it has a 10-year term with two one-year extensions. The firm prefers to take a minority share and a majority share with offices in North America, South America, Europe, the Middle East, and Asia.
With the analysis of the top ten solar energy stocks to buy right now complete – we can now proceed into a discussion on how long it takes to find the right investment for your portfolio.
Energy plays a key role in the global economy as it provides fuel and power to the engines that drive international trade and travel. Consequently, during times of economic slowdowns, such as during the pandemic of COVID-19, it can significantly affect energy demand and prices. That can significantly affect energy stocks prices. In contrast, when the economy hits the pedal, as it did in 2021, demand soars, and prices usually rise.
As a result, the best energy stocks to buy are those that can weather a downturn easily. In addition, that puts them in a strong position when the market improves. Investors in energy stocks should also consider focusing more on clean energy companies that rely on renewable energy sources. That is especially important during the Biden administration when it pledges to lead the country to an emissions-free future.
The companies involved in the exploration and production of solar energy are subject to enormous operating costs. Thus, this will play a major role in determining the profitability of the solar energy stock.
A concern about buying solar stocks is how many solar panels cost and how they affect the stock’s performance. By 2020, the global cost of solar power will be below $0.06 per KWH, down from more than $0.38 just a decade ago. Although it is higher than some fossil fuels in certain locations, the prices are often comparable when tax breaks and incentives are considered. Due to the steadily rising costs of fossil fuel electricity, the real savings from solar will come in future years.
If you choose solar, you effectively lock in costs at a constant rate. If solar doesn’t cover all your energy needs, upfront installation costs and fossil fuel electricity costs are the only additional cost factors.
Currently, the most efficient solar panels have an efficiency rating of up to 23%, but the majority have a rating between 15% and 20%.
In the coming years, the solar energy industry may offer many opportunities for income investors. The sector is expected to expand rapidly, which will allow companies like Brookfield Renewable, Clearway Energy, and NextEra Energy Partners to continue growing.
The attractive dividend yields of these stocks offer upside potential, making them excellent dividend stocks in the renewable energy space. Moreover, investing in these companies for the long term is a smart move since they are likely to generate more income for years to come steadily.
We’re beginning to see a subtle shift toward solar power as renewable energy becomes a big discussion point due to climate change. To become more environmentally friendly, major corporations such as mining are implementing more renewable energy products. Although it is still a new form of energy with costs for all the solar products, the price and utility-scale gradually increase over time.
Investing is no different. Despite never seeing a significant spike in demand, energy gradually grows in importance over time. As a city or project grows, it requires energy providers to meet the demand. They also need to be maintained. Constant growth and maintenance require continuing revenue.
Governmental ties to solar technologies have changed dramatically over the past few years. The Trump administration imposed a 25% tariff on solar modules imported to the United States in 2018. There was some concern about the long-term effects of this on the stocks of solar energy companies. A short time later, China slashed the incentives provided to patrons of solar companies. For solar energy stocks, 2018 was not a great year. Despite this, solar industry stocks increased slowly, though they were still increasing.
Solar energy becomes more profitable for commercial and residential owners through government incentives. The better the laws, the more likely it will grow in an area where a solar company is located.
Those ten solar energy stocks mentioned earlier are also large-cap companies. On the other hand, some penny stocks are low-priced and have small market capitalization.
According to the Securities and Exchange Commission, Penny stocks are publicly-traded companies valued at less than $5. So even though there are risks associated with oil penny stocks, the upside potential is huge.
Nevertheless, if you are looking for the best solar energy penny stocks to buy right now – consider these companies:
The Sunworks company provides high-performance, high-efficiency solar power systems. It provides services to various industries, including residential, commercial, agricultural, industrial, and public. In addition, the company is known for its solar energy project development and operations.
Among the services that Sunworks offers are project management, solar performance assessment, procurement, installation, and financing. Aside from that, the company is also a member of the Solar Energy Industries Association (SEIA).
SunHydrogen is a California-based solar technology company that has developed a breakthrough technology that uses sunlight and any water source to produce renewable hydrogen. In contrast to other fuel resources, the company’s solution emits no CO2. The only byproduct is water.
It plans to expand its business of producing hydrogen for vehicles powered by hydrogen fuel cells and renewable electricity. According to SunHydrogen’s website, its solution will produce the lowest cost of renewable hydrogen.
The Orbital Energy Group provides power infrastructure, solar solutions, and integrated energy infrastructure services. Their operations are based in the United States and the United Kingdom. Orbital Power Services, Orbital Solar Services, and other companies make up the company. Here are some of the highlights of the business:
Orbital Power Services provides a full range of installation services. The company specializes in the power, utility, and midstream sectors. In addition, it offers engineering, construction, maintenance, and emergency response services.
Founded in North Carolina, Orbital Solar Services specializes in solar energy systems. In addition, the company specializes in the management and delivery of renewable energy projects.
The Solar Alliance provides energy solutions for businesses, industries, and residential customers. It installs solar panels throughout the southeastern United States.
The company has operations in Tennessee, Kentucky, North Carolina, and South Carolina. Commercial projects can also be done anywhere in North America. More than 10,000 homes and businesses have used the company’s energy solutions. Solar Alliance also installs chargers for electric vehicles (EVs) and solar canopies for charging at home.
The company specializes in designing, engineering, installing, and monitoring solar energy systems. Since 2004, Spectacular Solar has aimed to make solar energy easy and affordable. It operates in New Jersey and serves residential, commercial, and nonprofit customers.
Spectacular Solar customizes solar systems to fit each customer’s energy requirements and finances. They also offer solar financing without upfront fees. Instead, customers are charged monthly utility fees that are supposedly lower than those of other power providers.
You should clearly understand what solar energy stocks make sense for your long-term investment portfolio and investment objectives by this point in our guide. In that case, the next thing to consider is where to purchase solar energy stocks.
You should be able to choose a trading platform that will enable you to access the solar energy stocks that you wish to include in your portfolio at a competitive fee. That is an additional benefit provided by the platform if it offers fractional shares. As a result, you can buy the best dividend stocks and the hottest solar energy stocks for a minimum investment of just $10.
As a result, we found that eToro is the best place to invest in solar energy stocks – here’s why:
We recommend eToro as the best online broker for retail investors. There are more than 3,000 stocks available on the platform – spread across more than a dozen exchanges and markets. That includes all 10 solar energy stocks that we examined today. Moreover, on eToro, you can invest as little as $10 to buy stocks. Therefore, you can gain exposure to some of the most expensive stocks through fractional share trading.
Markets are supported in the US, UK, Hong Kong, Germany, and others. eToro allows you to buy and sell solar energy stocks at 0% commission, whether you are buying the US or foreign companies.
The company supports fractional shares and requires only a $10 minimum deposit to begin investing in solar energy stocks. You can also deposit funds for free if you’re based in the US. In addition, several convenient payment methods are available, including debit or credit cards, Paypal, Neteller, ACH, and online banking.
Additionally, if you invest in solar stocks that pay dividends – many of them do – you will receive your share of the dividends direct to your eToro account. Dividends can be reinvested in the oil industry or withdrawn. Additionally, hundreds of commission-free ETFs are available through eToro if you want to diversify your portfolio.
Professionally managed portfolios are also available. Smart portfolios allow you to gain passive exposure to various industries – such as solar energy. Finally, eToro is known for its popular cryptocurrency exchange – which allows you to purchase Bitcoins and dozens of other leading digital currencies.
Global commodity prices are soaring, so it could be the perfect time to add solar energy stocks to your portfolio. Solar energy shares are doing well – but companies in this space generally pay out solid dividends.
Suppose you are interested in investing in solar energy stocks at 0% commission and with only a $10 minimum investment. In that case, you can open a free eToro account and place funds within five minutes.
Over the long term, solar energy could be a good investment. The solar energy industry is expected to grow rapidly in the coming years, which should boost stock prices.
Here are a few stocks to watch: Enphase Energy, Inc., Sunrun Inc., or First Solar, Inc.
Yes. With an account with a broker that offers access to your chosen solar energy stock, you can invest from the comfort of your own home. Most solar energy stocks trade on NASDAQ.
Solar energy will be an essential part of this energy transition. So it is advisable to use a regulated broker like eToro to begin trading now.
Our list of the best solar energy stocks includes 10 companies that can be bought and sold at eToro for just $10. In addition, the top-rated broker offers 0% commissions on the US and foreign solar energy stocks.
You only need to create your account, verify it, deposit the required funds, search for the solar energy stock option you want the most on the platform, and you can start trading then.
English Language professional with a vast experience teaching English as a second language, English translator to Spanish, Cryptocurrency enthusiast, interested in geopolitics and economy.
Best UK Stock, Forex, CFD, Crypto, Social or Day Trading Platform that meets your needs.