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Solar energy stocks to invest in

Many reports say that this year belongs to solar farms. Forecasts for photovoltaics show that the demand peak is still yet to come. Demand for solar energy is high and we aren’t only talking about industrial countries like the USA, Canada and the UK. In 2020, stock prices for many solar companies in less developed countries like Poland and Romania saw a 100-200% growth in just 3 months. Solar trends are promising so it’s worth getting into solar stocks. Investing in solar stocks can be a gold mine but you have to know what companies are worth your attention. 

First let’s look at the solar market. Comparing a statistic from 2010 with one from 2020, we can see a bouleversement. The installation, manufacturing, trade and distribution market doubled in size. These markets were already large 10 years ago. According to official data, over 250,000 people work in the solar energy industry in the US.

Why has the demand for solar energy increased? The answer is very simple: the cost of production and the cost of installing solar panels has decreased. These prospects are very tempting for investors – declining costs and steadily rising demand. 

Solar energy companies stocks

On the stock exchange we find a lot of companies who produce power inverters, solar panels or solar cells but not everyone can be prize-winning. The financial market is unrelenting, COVID-19 has shown us that in just a few days the stock of many companies can drop about 50-70%. That is why it is important to do your research on the  company before buying stocks – The “the best solar company to buy” list includes strong, profitable companies with a lot of potential. What solar companies are publicly traded? Let’s check. 

Jinko solar – chinese solar company stock

Jinko solar is a must-have on our “fastest growing solar companies” list. This company is listed on the New York Stock Exchange. Although the value of its stock halved in March 2020, it wasn’t long before its stock was once again on the rise. Know-how is very important and it can be a merit for a company. Jinko solar has over 250 scientists and solar energy experts in its workforce who are working on developing more efficient solar panels. If they manage to optimize certain processes even more, they could be pioneers in solar energy. Therefore, it is one of the companies worth keeping an eye on.

If you want specific numbers about this company:

  • Number of employees: ~ 14 000
  • Over 14 years on the market 
  • High quality products and over 30 years of warranty
  • Branches in over 15 countries
  • On NYSE over 10 years

Why is it the best stock to buy? 

  • Cheap labor
  • Invests in research and development of know-how
  • Stocks on NYSE and other stock exchanges 
  • Member of the SMSL (Silicon Module Super League)

Brookfield Renewable Partners – interesting clean energy company

Brookfield Renewable Partners is traded as BEP on the New York Stock Exchange and BEP.UN on Toronto Stock Exchange. BEP was founded 9 years ago in Toronto where its headquarters is still located. This company strongly invests in renewable energy sources. It has hydroelectric plants, wind farms and solar farms. Brookfield Renewable Partners fits ideally in an ecological world. Environmental quality standards are more and more restrictive, forcing many companies to invest in energy to avoid penalties. 

Why is BEP the best solar energy stock to invest in? It is in our top solar stocks and here is why: 

  • strong position on the market in developed countries (Canada and US) 
  • diversified alternative energy (water, wind, sun) 
  • stable div yield (but only ~4 %)
  • investing in innovative methods (for example: GrafTech manufactures)
Brookfield Renewable Partners stock

Enphase Energy – the top green stock?

Enphase Energy is a company that has a lot of experience with microinverters and solar energy. ENPH is traded on NASDAQ and S&P 400 Component. This global energy company, funded by multiple investors, has many big plans to look forward to in the near future. If you are looking for a dividend solar stock, this isn’t the stock for you. Enphase Energy strongly invests all of its money in its own future. Pictured below is the company’s response concerning this matter on its website. 

Enphase energy dividend

Despite all of that, this company has good accounting liquidity and plans to conquer the market. This isn’t a renewable energy dividend stock, it’s a long-term investment. They offer  smart solars and other products such as IQ batteries, microinverters, and accessories for solar systems. 

The main reasons to invest in this stock:

  • One of the strongest and most efficient microinverters on the market 
  • Big motivation in the corporation’s management and focus on research and development
  • Its revenue nearly doubled from 320 million USD in 2018 to 630 million USD in 2019.
  • Good sales in North America (many new investments in this field)
  • Over 130 countries in its portfolio 
  • Former Tesla VP in corporation’s management (Eric Branderiz) 

Source: investor.enphase.com

Gross maring enphase energy

In our opinion, this is the best clean energy stock. Renewable energy needs investing in R&D when market development is still at a high level. In letters to its shareholders, the CEO confirmed that COVID-19 hasn’t affected their program development and the company is still thriving. 

Solar panel companies are currently being targeted by investors because it seems to be a good long term investment with a guaranteed profit. If you are still wondering what the best renewable energy companies to invest in are, we have one last green company listed on the stock exchange. 

NextEra Energy

If you know companies from stock exchanges such as DJUA, S&p 100/500 or NYSE you may have come across this company. This company has a lot of experience on the market because it was founded in 1984. NextEra Energy ranks 167th place in Fortune 500. It has a revenue of approximately 20 billion USD and has left a positive impression on investors because of its low production costs and high margin. NEE is not a stock for day trading, but should be treated as a long-term investment.

To sum up: the solar energy market is very large and is constantly growing. The forecasts are very optimistic and even COVID-19 has not hindered its growth. If you are looking for an interesting company for your portfolio, you should definitely add a green energy company to it. But remember that alternative energy stocks with dividends can be fallacious. Keep in mind that in a fast-growing market, a company has to invest in new technologies and solutions. And you? What are your top 3 solar companies?

Jakub Borowiec
Jakub Borowiec
Financial markets enthusiast. I studied management at the University of Economics in Wroclaw.
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