6 Best Solar Energy Stocks in 2024
Move over oil. The future of alternative energy is solar. Here’s a list of the top rated solar energy stocks for this year.
Solar energy stocks are poised for huge gains as we shift towards renewable energy in a major attempt to reduce Co2 emissions.
Best Solar Energy Stocks
- Tesla
- First Solar
- Sunrun
- NextEra Energy
- Enphase Energy
- Jinko Solar Energy
Tesla (TSLA)
Tesla is well known as an EV maker but most investors aren’t aware of Tesla’s fast growing solar panel and roof business. I previously highlighted Tesla in my best EV stocks to buy article but this time around we’ll talk about Tesla’s solar energy business in depth.
In fact, Tesla solar energy business could overtake its EV business in the long run as more global households embrace cheaper renewable energy.
In Q2 2021, solar energy deployments were up 200% YOY with Tesla’s Powerwall becoming an extremely popular product along with the megapack.
Solar roof deployments also tripled YOY and Tesla’s entire solar energy business reached a record $802 million in revenue during the quarter.
That’s almost $1 billion in quarterly revenue from solar energy alone so you could buy Tesla stock just to take advantage of its growing solar energy business just in case the EV market faces tougher competition in the future.
While Tesla isn’t a pure solar stock play, I love having the opportunity to own several core businesses within one stock to reduce long term risk and increase long term shareholder value.
FirstSolar (FSLR)
First Solar is a leading thin film photovoltaic (PV) maker that produces renewable energy solar panels as an alternative to carbon intensive crystalline silicon PV panels.
While First Solar has an interesting business model, FSLR stock really hasn’t done anything over the last couple of years unlike other renewable energy stocks.
The company produces 9.0 gHW of energy so far YTD with a potential for expansion due to the groundbreaking of new factories in Ohio and India.
Top Solar Energy Stocks
- Sunpower (SPWR)
- Sunrun (RUN)
- Terraform Power (TERP)
Solar Energy is a relative new technology with several companies entering the space in recent years. We take a long term approach with our stock analysis so this article is suited more for long term investors who plan to hold their shares over the next 5, 10 and 20 years.
No one knows exactly where these solar energy stocks will trade by the end of 2019 but the long term trend will be upwards as more and more companies seek out clean, sustainable energy that’s cost effective, cheaper than oil and good for our planet.
While there are literally dozens of solar energy stocks, we will focus on our top 5 picks for long term investors.
Sunpower (SPWR)
- Market Cap: $1 billion
- 2018 Revenue: $1.8 billion
Sunpower is one of our favorite Solar energy plays that’s on a massive uptrend since bottoming out in December 2018. It’s up over 50% since then and has a strong presence in the growing solar industry.
Sunpower is the #1 solar provider for commercial solutions for 2 years straight and the company grew its residential business more than 15% last year with over 236,000 customers. Walmart, Toyota and Fedex are just a few of their commercial clients.
Sunrun (RUN)
Sunrun is a residential solar installation company that’s currently #1 in the United States. With over 230,000 customers, I love Sunrun as a long term buy and hold stock due to this current market position and potential for long term growth.
Only 2 to 3% of American homes are currently using Solar energy yet study shows up to 90% of Americans are interested in utilizing solar energy.
Sunrun is the clear market leaders and one of the most pure plays on this growing trend. Quarterly revenue growth stands at 57% and has grown from $304 million in 2015 to $759 million in 2018. Cash flow remains positive but the company is still posting EPS losses.
Terraform Power (TERP)
- Market cap: $2.82 Billion
- 2018 Revenue: $777 Million
- Dividend Yield: 5.8%
Terraform power is one of the better solar energy REITs to own since they make their money by leasing out their solar and wind assets to major companies like GE.
The company pays out a nice quarterly dividend and is a good buy for dividend investors looking to add solar energy stocks to their portfolio.
Watts Generation increased from 7,167 in FY2017 to 8,088 in FY 2018. Plus, the company posted a positive 7 cents EPS. Things are looking bright for Terraform.
