The Best Solar Stocks to Buy Now (2023)
Now that you know what to do, let's get into this year's list of the five best solar energy stocks. Our list should not be taken as a recommendation to buy, but rather an insight into the solar energy sector.
Keep in mind also that figures are constantly changing. The best investments are made by those who regularly monitor their markets and keep tabs on the latest trends.
As of February 2023, here are some of the top solar industry stocks to consider:
First Solar (FSLR)
First Solar is an American company that specializes in photovoltaic (PV) modules, or solar panels, which convert sunlight into electricity. It also provides engineering and construction services for PV systems and sells power plants to utility companies around the world.
With a market cap of $17.85 billion, First Solar is one of the largest solar stocks on the market. It's also an industry leader, boasting increasing revenues and strong quarterly earnings. The year-to-date, one-year, and five-year reports all lie in the green for First Solar; the company saw a +14.75% YTD and a 140% boost over the past year.
The major drawcard keeping First Solar ahead of industry competitors is its production of high-performance modules. These thin-film panels are cheaper per watt and more efficient than their silicon counterparts. As such, First Solar has a strong angle keeping its balance sheet in the green.
SolarEdge Technologies (SEDG)
Established and based in Israel, SolarEdge is a company specializing in the production and sale of photovoltaic inverters. It has a $17.8 billion market cap and an enterprise value of $18.6 billion.
SolarEdge is a highly active player in the solar industry and is known for its innovative technologies and cutting-edge products. Its revenues have increased significantly over the past several years, with an +11.95% YTD and +32% one-year growth rate after a consistent upward trajectory over the past five years.
In recent news, SolarEdge has developed the first software to be approved for use with flexible exports from residential panels. Developments like these keep SolarEdge ahead of the competition and ensure its standing in the market.
Enphase Energy (ENPH)
Remont, California is home to Enphase Energy – a manufacturer of micro-inverters and energy storage systems with a primarily residential market. The company has been making headlines in the solar sector recently with a new bidirectional EV charger; the system sources power from both the grid and residential panels.
In terms of financials, ENPH has had a slower start to the fiscal year than other solar companies. However, the company has seen a one-year increase of 58.41% and maintains a $30.3 billion market cap.
The electric vehicle market isn't likely to take a nosedive any time soon, so it's a positive sign that Enphase Energy develops heavily in that arena.
Sunrun Inc (RUN)
Sunrun Inc has been in operation since 2007 and currently provides photovoltaic systems to residential areas, as well as energy storage products. The company is reportedly teaming up with Lunar Energy Inc for a virtual power plant (VPP) project, Gridshare.
The past 12 months has seen a 10.88% boost for Sunrun – lower than other comparable companies, but still a net positive. The company has a market cap of $5.75 billion and a price-to-earnings (P/E) ratio of 91.09.
VPP systems are in the spotlight right now as more residential areas require smarter grid systems to regulate solar power supply. In that case, Sunrun's partnership with Lunar Energy Inc has the potential to reflect positively on its balance sheet.
Daqo New Energy Corp (DQ)
Chinese corporation Daqo New Energy is a frontrunner in the production of monocrystalline silicon and polysilicon. The company is an active contributor to China's 'solar panel boom,' as the products it manufactures are required for solar photovoltaic systems.
Daqo started the year strong in 2023 with a 7.86% increase as of early February. Over the past twelve months, the company has seen a modest boost of +15% and now has a market cap of $3.23 billion.