What Are The Best Solar Stocks To Invest In 2024?
Overview:
The solar industry designs and installs technologies through solar software that capture solar energy and convert it to electricity. Companies in this area are collaborating to help the world economy move away from fossil fuels like oil and natural gas and toward renewable energy sources. This process will require billions of dollars and many years to achieve. That makes solar energy an appealing opportunity for long-term investment.
The sector includes a wide range of companies that perform the following functions:
- Manufacturing components and panels
- Installing solar panels
- Operating solar energy generating facilities
Why to invest in solar energy stocks?
The United States, the European Union, and Japan have all pledged to be carbon neutral by 2050, and a shift to renewable energy such as solar is critical.Solar energy produces no greenhouse emissions and is abundant in many regions, making it the cheapest kind of power in the world even without subsidies.
Solar energy, the fastest-growing renewable technology, accounts for only 3% of global electricity production. As a result, there is certainly space for expansion. Solar installations are increasing, aided by falling prices. Solar energy is also benefiting from government legislation, tax breaks, and business pledges to achieve net-zero carbon emissions.
In 2020 alone, global capacity increased by 139 GW, bringing the total to 760 GW.According to IHS Markit, a data provider, installations will increase by 20% in 2021 and double in the next five years. The main issue with solar power is that it can only generate electricity during the day because the sun does not shine all of the time. Even this challenge, however, is being met with advancements such as improved lithium-ion battery storage. If battery costs fell, customers would be able to bank solar power during the day and use it at night, or even release it back into the grid if battery costs fell.
Despite these good developments, solar equities face a difficult 2021. The biggest solar stock ETF, Invesco Solar ETF (TAN), is down 14% until the end of November. Solar panel manufacturers, like many other industries, are dealing with cost inflation and supply chain issues. The prices of key metals such as steel and aluminum have risen. There have been shortages of semiconductors.
Some Chinese manufacturers were also harmed when the US government halted solar panel imports, citing human rights violations in the Xinjiang region, the center of China's solar sector.
However, these short-term difficulties may indicate that now is an excellent moment to invest in the long-term trend.
Best solar stocks to invest in:
The solar energy sector is growing at a rapid pace. The National Renewable Energy Laboratory estimates that the solar sector will add 10 gigawatts (GW) of additional capacity per year through 2022. In the years 2023–2030, this should rise to an average of 18–20 GW every year. A substantial drop in expenses is behind this increase. Solar power, astonishingly, is on course to become the cheapest source of bulk electricity in the next few years.
While some significant corporations are focused on solar energy  and stand to gain from its development, not all of them have plans in place to maximize shareholder value. However, the following three firms seem to be the most deserving of investors' attention:
First Solar:
- Market capitalization: $11 billion
- Year-to-date return: 3%
First Solar is a worldwide innovator in the development of solar energy solutions. It creates, produces, and sells cutting-edge solar modules. One factor that sets First Solar apart from other solar panel manufacturers is its emphasis on producing a patented advanced thin-film module. In less-than-ideal situations, like low light and warm temperatures, these panels outperform their silicon-based competitors. They're also bigger, which helps lower the cost per watt. Because of these characteristics, they are excellent for utility-scale solar energy installations.
First Solar positions itself apart from its competitors in the solar market even further by having one of the best financial sheets. It often has more cash on hand than debt. This provides it with the financial freedom to pursue its objective of developing and manufacturing thin-film solar modules for utility-scale clients. These qualities place First Solar in an ideal position to succeed as the solar industry grows.
Enphase Energy:
- Market capitalization: $33 billion
- Year-to-date return: 41%
Enphase Energy, based in Fremont, California, manufactures microinverters for solar panels and backup energy storage. In 2021, the business will have supplied over 39 million microinverters, totaling around 12 GW of electricity. The micro inverter-based solar and battery solutions enable homes to harness, sell, and regulate their own electricity through a smartphone app. Enphase continues to observe significant client demand, despite a restricted supply chain. The company made $774 million in sales in 2020, but sales are up 77 percent so far in 2021, which is great news for the stock, which has defied the solar trend.
SolarEdge Technologies:
- Market capitalization: $16 billion
- Year-to-date return: 0%
SolarEdge Technologies creates power optimizers and inverters that turn solar energy into useful electricity. These components have enhanced the way solar panels convert the direct current (DC) power supplied by the sun into the alternating current (AC) energy needed by the electrical grid. A system that employs SolarEdge's power optimizers will be less expensive than one that employs, for example, a microinverter manufactured by a business such as Enphase Energy, with minimum efficiency loss.
SolarEdge's concentration on low-cost power optimizers has allowed them to gain market share from rivals as solar project developers prioritize cost. In addition, the firm has spent money on purchasing and developing new products in the energy storage and energy management sectors, as well as smart modules, in order to raise its average income per installation. The company's dominant market position is complemented by a solid, cash-rich financial sheet. This provides it with the financial freedom to spend on extending its production capacity and technical advantage over rivals. It has also enabled SolarEdge to grow into new energy market categories such as storage, electric vehicle (EV) charging, batteries, uninterruptible power supply (UPS) systems, EV powertrains, and grid services solutions. These elements position SolarEdge for success as it implements its strategy to extend its presence in the rapidly increasing renewable energy market.
JinkoSolar Holding Co
Market capitalization: $2.5 billion
- Year-to-date return: -20%
JinkoSolar, a Chinese solar panel producer, is one of the world's biggest solar panel manufacturers. Chinese manufacturers, backed by the Chinese government, have been cost-competitive, dominating the solar industry over the last decade. JinkoSolar has nine worldwide manufacturing locations and ships its products to over 160 countries. The firm projected more than $5 billion in sales for 2020, but has since battled with high manufacturing costs and logistical difficulties.
Daqo New Energy
- Market capitalization: $4 billion
- Year-to-date return: -13%
Daqo New Energy is a Chinese firm that manufactures polysilicon and polysilicon wafers. Daqo, one of the world's leading polysilicon producers, purchases silicon powder and converts it into high-quality polysilicon, which is used to build polysilicon wafers. China produces the majority of the world's polysilicon.) Polysilicon wafers are then supplied to solar panel producers, who utilize them to construct the panels. Daqo has a lot of cash and its profitability has been improving all year as polysilicon prices have risen. To fulfill demand, it is operating its manufacturing facilities at full capacity. Daqo is essentially a commodity business, with its fortunes related to polysilicon pricing.
Top 10 Solar Companies in India Listed in Stock Market:
Solar enterprises in India and the solar industry in India are rapidly expanding as a result of many government programs promoting clean and green renewable energy. SEZs are eligible for a variety of government incentives (Special Economic Zones).
As part of its obligations under the Paris Agreement, the Government of India has set an ambitious objective of generating 175 GW of renewable energy capacity by 2022. By 2022, India's renewable energy market is estimated to be worth more than $80 billion.
1. Waa Solar Ltd
Waa Solar Company is mainly engaged in solar power generation by setting up Solar Power Project and by investing in Special Purpose Vehicle (“SPV“) associate and subsidiaries companies which are engaged in solar power generation activities.
- Listed in BSE Stock Market as: WAA | 541445 | INE799N01012
- 52 Week High Share Price: 158.95
- 52 Week Low Share Price: 28.30
- Website: http://www.waasolar.org
2. WEBSOL ENERGY SYSTEM LTD
Websol is a leading manufacturer of photovoltaic crystalline solar cells and modules in India.
- Listed in BSE Stock Market as: WEBELSOLAR | 517498 | INE855C01015
- Listed in NSE Stock Market as: WEBELSOLAR | ISIN: INE855C01015
- 52 Week High Share Price: 96.10
- 52 Week Low Share Price: 21.15
- Website: http://www.webelsolar.com
3. Synergy Green Industries Ltd
- Listed in BSE Stock Market as: SGIL | 541929 | INE00QT01015
- 52 Week High Share Price: 93.00
- 52 Week Low Share Price: 75.25
- Website: https://www.synergygreenind.com
4. Ujaas Energy Limited
Ujaas Energy Ltd is the first company to generate and sell Solar REC in India from its solar power plant. The company has been in the field of engineering for more than three decades. At present the company manufactures products for the transformer industry and is putting its efforts towards green energy.
- Listed in BSE Stock Market as: UJAAS | 533644 | INE899L01022
- Listed in NSE Stock Market as: UJAAS | ISIN: INE899L01022
- 52 Week High Share Price: 21.70
- 52 Week Low Share Price: 4.90
- Website: https://www.ujaas.com
5. Surana Solar Limited
Manufactures of Solar Energy Systems with the focus on Solar Photovoltaic PV Modules.
- Listed in BSE Stock Market as: SURANASOL | 533298 | INE272L01022
- Listed in NSE Stock Market as: SURANASOL | ISIN: INE272L01022
- 52 Week High Share Price: 15.35
- 52 Week Low Share Price: 6.70
- Website: http://suranasolar.com
6. SUZLON ENERGY LTD
A one-stop solar energy solution provider offering end-to-end solutions in solar power projects.
- Listed in BSE Stock Market as: SUZLON | 532667 | INE040H01021
- Listed in NSE Stock Market as: SUZLON | ISIN: INE040H01021
- 52 Week High Share Price: 12.39
- 52 Week Low Share Price: 2.70
- Website: https://www.suzlon.com/in-en/end-to-end-solutions/solar-energy-solution
7. INDOSOLAR LTD
Indosolar is a manufacturer of photovoltaic cells and solar panels. It is the largest PV cell manufacturer in India by capacity.
- Listed in BSE Stock Market as: INDOSOLAR | 533257 | INE866K01015
- Listed in NSE Stock Market as: INDOSOLAR | ISIN: INE866K01015
- 52 Week High Share Price: 8.37
- 52 Week Low Share Price: 1.61
- Website: http://www.indosolar.co.in
8. Gita Renewable Energy Ltd
Main objective of this company is to generate Power from renewable resources including Wind, Solar and Hydro.
- Listed in BSE Stock Market as: GITARENEW | 539013 | INE776O01018
- 52 Week High Share Price: 7.25
- 52 Week Low Share Price: 4.90
- Website: https://www.gitarenewable.com
9. Urja Global Ltd
Urja is engaged in design, consultancy, integration, supply, installation, commissioning & maintenance of off-grid and grid connected Solar Power Plants. The company is approved by Channel Partners of Ministry of New and Renewable Energy (MNRE), Govt. of India.
- Listed in BSE Stock Market as: URJAGLOBA | 526987 | INE550C01020
- Listed in NSE Stock Market as: URJA | ISIN: INE550C01020
- 52 Week High Share Price: 5.95
- 52 Week Low Share Price: 1.60
- Website: http://urjaglobal.in
10. XL Energy Ltd
This company provides end to end solutions in the field of Solar Power. The company is engaged in production of Solar Photovoltaic Modules. The company has also started their own EPC division.
- Listed in BSE Stock Market as: XLENERGY | 532788 | INE183H01011
- Listed in NSE Stock Market as: XLENERGY | ISIN: INE183H01011
- 52 Week High Share Price: 2.07
- 52 Week Low Share Price: 0.65
- Website: http://www.xlenergy.co
Conclusion:
The global market for renewable energy sources is continually increasing. It is owing to finite resources as well as industrialized countries' efforts to reduce harmful emissions from traditional fossil fuels such as oil, gas, coal, and others. With each passing year, advancements in automation technology and lower manufacturing costs make solar and other renewable energy sources more affordable. Many investors consider solar energy equities to be an appealing long-term investment vehicle. Such investments may provide significant money in a few years if the stock issuer is chosen carefully. Consider how appealing an investment idea like this might be. Every solar firm has its own history as the globe shifts toward eco-friendly goods and manufacturing. Some of them have risen to their feet, while others have trailed far behind. Starting around the turn of the century, a few solar enterprises were listed on the stock market. Environmentally conscious investors, as well as those who anticipate an increase in demand for solar energy, are keen on investing in solar equities. However, there are several solar stock possibilities, making the decision complicated.