We know that renewable energy is a polarizing topic. But the recent Inflation Reduction Act that passed the United States Congress has an undeniable implication.
The United States is aggressively moving toward renewable energy. And it has the full backing of the Biden administration.
This means that investors need to put their personal feelings about the energy sector aside when deciding on where to invest their money. Billions of dollars are flowing into the renewable energy sector, and solar stocks will be major beneficiaries.
One sector that stands to benefit the most is the solar sector.
Several research firms forecast that the solar market will grow at a compound annual growth rate (CAGR) of more than 20% over the next five years. And Fortune Business Insights estimates that the global market will be worth $1 trillion at the end of 2028.
But this is only continuing a trend that has been in place since 2021. Solar is one of the fastest-growing sectors in the stock market. And the bullish outlook for this sector is about more than the funding the industry will receive. The Biden administration announced in June that it was suspending tariffs on solar panel components from four countries. This will be a key step in helping to untangle the supply chain for the necessary components.
This two-pronged strategy will be key to the sector achieving the Biden administration’s goal of having 45% of the nation’s energy supply coming from solar by 2050. That’s up from the 4% the sector supplied in 2020.
In this presentation, we’re highlighting seven solar stocks that stand to benefit as solar becomes an increasingly cost-effective option for consumers and for businesses.
View the 5 Solar Stocks Leading the Clean Energy Boom
The clean energy sector, particularly solar energy, has been experiencing significant growth in recent years. Here are five solar stocks that have been leading the clean energy boom:
- First Solar Inc. (NASDAQ: FSLR): First Solar is a leading global provider of photovoltaic (PV) solar energy solutions. The company focuses on manufacturing and delivering high-efficiency solar modules and developing utility-scale solar power projects.
- SolarEdge Technologies Inc. (NASDAQ: SEDG): SolarEdge is a provider of smart energy solutions, specializing in the design and production of PV inverters and power optimizers. The company’s innovative technology maximizes energy production and increases system reliability.
- Sunrun Inc. (NASDAQ: RUN): Sunrun is one of the largest residential solar and energy services companies in the United States. The company offers solar installation, financing, and maintenance services, making it easier for homeowners to adopt solar energy.
- Enphase Energy Inc. (NASDAQ: ENPH): Enphase Energy is a global leader in solar microinverter systems. The company’s advanced technology allows for improved solar energy production, enhanced system monitoring, and increased reliability.
- Canadian Solar Inc. (NASDAQ: CSIQ): Canadian Solar is a vertically integrated manufacturer of solar modules and provider of solar energy solutions. The company has a global presence and offers a wide range of solar products and services.
These five solar stocks have shown strong performance and have positioned themselves as leaders in the clean energy industry. However, it’s important to conduct thorough research and analysis before making any investment decisions. The solar industry can be influenced by various factors, such as government policies, technological advancements, and market dynamics, which can impact the performance of individual stocks.