Do you want to make money in the solar energy market, which is growing quickly? Putting your money into the right solar stocks can make or break your portfolio. We’ll talk about the best solar stocks to watch in 2024 and beyond in this in-depth guide. We’ll give you the information and thoughts you need to make smart spending decisions about everyone from big names in the field to up-and-coming stars.
Understanding the Solar Energy Market
To fully understand the possibilities of solar stocks, you need to know about the solar energy business as a whole. The total capacity of solar photovoltaic (PV) systems has been hitting new highs every year, and the global solar energy market has been growing at an exponential rate over the past few years.
- The solar energy business is growing because of a number of things, such as
- Solar PV system prices are going down.
- Using more rules and rewards for green energy
- More people are learning about how solar electricity is good for the earth.
Improvements in the performance of solar PV and storage options
The market for solar energy is growing, and buyers are becoming more interested in solar stocks as a way to make money from this growth.
Best Solar Stocks to Invest in 2024
It’s important to find the companies that are likely to do well in the long run when dealing in solar stocks. In 2024, these are some of the best solar stocks to keep an eye on:
First Solar, Inc. (FSLR)
First Solar makes some of the best thin-film solar panels and is a big name in the utility-scale solar business. The business has a history of making money and is known for its cutting-edge technology and dedication to the environment. Important things to know about First Solar:
- Value of the market: $12.5 billion
- $59.60 to $123.13 in 52 weeks
- The rate of growth is expected to be 25% per year for the next five years.
SunPower Corporation (SPWR)
SunPower is a world company that focuses on solar energy options for homes and businesses. The company has a strong foothold in both the U.S. and foreign markets, and its solar panels and energy storage systems are known for being very efficient. Facts about SunPower:
- The company is worth $2.3 billion on the stock market.
- $12.78 to $28.42 over the past 52 weeks.
- The rate of growth is expected to be 20% per year for the next five years.
Enphase Energy, Inc. (ENPH)
Enphase Energy is one of the biggest companies in the solar business that makes microinverters and energy storage systems. In the past few years, the company has grown very quickly. This is because more and more people want its new goods and more and more homes are getting solar systems. Important things to know about Enphase Energy:
- Value of the stock market: $25.2 billion
- 52-week range: $116.83 to $339.92
- The rate of growth is expected to be 30% per year for the next five years.
SolarEdge Technologies, Inc. (SEDG)
When it comes to designing and making power optimizers, inverters, and tracking systems for solar energy systems, SolarEdge is the world leader. The company is well-known for its cutting-edge technology and strong financial success. It has a strong foothold in the home, industrial, and utility-scale solar markets.
- SolarEdge’s market value is $13.8 billion, and its 52-week range is $190.15 to $375.90.
- The rate of growth is expected to be 25% per year for the next five years.
Canadian Solar Inc.
Canadian Solar is one of the biggest names in the utility-scale solar business and manufactures solar PV panels worldwide. The company excels in foreign markets, known for producing affordable products and maintaining a dependable supply chain. As one of the best solar companies in California, Canadian Solar has a strong presence in the U.S. market, providing high-quality solar solutions to meet growing demand. Facts that matter about Canadian Solar:
- Value of the market: $1.9 billion
- $26.69 to $47.69 over the past 52 weeks.
- The rate of growth is expected to be 20% per year for the next five years.
Factors to Consider When Investing in Solar Stocks
When dealing in solar stocks, there are a few important things you should keep in mind that can affect how well the companies do. Here are some of the most important things to think about:
- Stability and profit in the finances
- Market share and how you compare to others
- New products and improvements in technology
- Getting into foreign areas and spreading out
- Regulatory climate and rewards from the government
Investors can make better choices and find the solar stocks that are most likely to grow and be worth their money in the long run by carefully looking at these factors.
Risks and Challenges in Solar Stock Investing
Solar stocks can be a good way to make money, but it’s important to know about the risks and problems that come with this industry. Among the most important risks are:
- Market changes and volatility
- There is competition from other forms of clean energy
- Changes in regulations and policy confusion
- Problems with the supply system and a lack of raw materials
- Obsolescence in technology and fast growth
To lower these risks, buyers should spread out their holdings, do a lot of studies, and keep up with the latest changes in the solar energy market.
Strategies for Investing in Solar Stocks
People who want to get the most out of their investments in solar stocks can use a number of different methods. Here are some of the most effective strategies:
- The dollar-cost average: Putting away a set amount of money on a daily basis to lessen the effect of market instability
- Moving capital between different solar energy market areas based on market factors and growth possibilities is known as sector rotation.
- Investing in themes: Putting more attention on certain topics or trends in the solar energy market, like energy storage or spread power
Investors can feel confident in the solar stock market and reach their long-term financial goals if they follow these tips and stay focused.
The Future of Solar Stocks
The solar energy market is likely to keep growing quickly over the next few years, which is good news for solar stocks. As the world moves toward a more environmentally friendly future, more people will want to use solar energy. This will lead to more new ideas and investments in the area.
- The future of solar stocks is expected to be shaped by the following major trends and events:
- Using energy storage options more and more
- More money is being put into neighborhood solar projects and spread production.
- Improvements in how well solar PV works and how it is made
- Growth of world trade and foreign economies
- Sustainability and engaging in environmental, social, and governance (ESG) issues are getting more attention.
Smart buyers who stay up to date on these trends and can change to the changing market will be able to make a lot of money as the solar energy market grows.
Conclusion
Investors seeking long-term gain and green energy exposure might consider solar companies. Investors can navigate the solar stock market and accomplish their financial objectives. Solar stocks are promising as the globe adopts solar energy. Investors may succeed in this fast-changing market by remaining educated, diversifying their holdings, and adjusting.