5 Solar Stocks To Watch This Week
It’s certainly not easy to be investing in the stock market right now. However, if we look at the broader trend right now, you would see constant headlines on companies transitioning from fossil fuels to renewable energy sources. And some consider solar stocks to be in a prime position to benefit from the shift. This is because many believe that the sector still has room to grow as photovoltaic (PV) systems become cheaper and more efficient. And that makes solar energy a compelling opportunity for long-term investors.
In fact, some estimates point out that by 2030, solar will become one of the most important sources of energy for electricity production in the world. To top things off, the U.S. Department of Energy’s Solar Energy Technologies Office study last year says that solar could account for as much as 40% of the nation’s electricity supply by 2035 and 45% by 2050.
The industry also does not lack exciting developments. For instance, Sunnova (NYSE: NOVA) recently partnered with Montgomery County Green Bank to help the transition of low-to-moderate income households within the region to affordable and clean energy solutions. Additionally, the program will allow customers to protect themselves from unpredictable utility prices. Therefore, taking control of their home energy costs. With that being said, here are five top solar stocks to watch in the stock market today.
Solar Stocks To Watch This Week
- Canadian Solar Inc. (NASDAQ: CSIQ)
- JinkoSolar Holding Co., Ltd (NYSE: JKS)
- SolarEdge Technologies Inc. (NASDAQ: SEDG)
- First Solar (NASDAQ: FSLR)
- Sunrun Inc. (NASDAQ: RUN)
First, let us look at the solar power and battery company, Canadian Solar. As the name suggests, the company is a provider of solar power products, services, and system solutions. In fact, it is a leading manufacturer of solar PV modules and a provider of solar energy and battery storage solutions. Over the past two decades, Canadian Solar has successfully delivered approximately 71 GW of solar PV modules to customers around the world. That said, CSIQ stock has been relatively flat since the start of the year.
Last week, Recurrent Energy, a wholly-owned subsidiary of Canadian Solar, announced the acquisition of two standalone energy storage projects from Black Mountain Energy Storage. Moving forward, these projects can store up to 200 MWh of energy each. They will provide dispatchable and reliable power to the grid. With the renewed focus on the sector, could CSIQ stock be a viable long-term investment?
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Similar to Canadian Solar, JinkoSolar is a respectable force in the PV industry. In detail, the company builds a vertically integrated solar power product value chain, from silicon wafers to solar modules. Under the JinkoSolar brand, it offers services such as solar power generation and solar system Engineering Procurement Construction and processing services. Despite all the market volatility, JKS stock has still risen more than 35% over the past year.
In May, JinkoSolar announced that it has signed a new distribution agreement with Aldo Star. For those unaware, Aldo Star is one of the largest distributors of solar energy solutions in Latin America. This new agreement makes Brazil the first market in Latin America to make JinkoSolar’s new N-type modules available. It is also noteworthy that the signing marks the world’s largest contract for the distribution of N-type ultra-efficiency PV modules from the Tiger Neo family of JinkoSolar. All in all, it appears that there is plenty of excitement surrounding JinkoSolar right now. So, should investors be paying more attention to JKS stock?
SolarEdge Technologies is a solar energy company that invented the intelligent inverter solution. Through this, it has changed the way we harvest and manage power in a solar PV system. Its DC-optimized inverter also seeks to maximize power generation while lowering the cost of energy produced at the same time. For a sense of reach, SolarEdge also engages in a broad range of energy market segments including PV, storage, EV charging, and grid services solutions.
In late May, the company announced that it has opened Sella 2, a two-gigawatt-hour battery cell and manufacturing facility. Located in South Korea, Sella 2 is currently producing test cells for certification. SolarEdge is also expecting production to ramp up during the second half of 2022. Once fully operational, the facility will allow SolarEdge to have its own supply of lithium-ion batteries as well as the infrastructure to develop new battery cell chemistries and technologies. Furthermore, the facility will be able to scale its battery cell capacity in the future to support the growing needs for storage solutions offered by the company. Given this announcement, is SEDG stock worth adding to your watchlist?
First Solar is a manufacturer of solar panels and a leading global provider of comprehensive PV solar energy solutions. The company’s advanced thin-film PV modules represent the next generation of solar technologies, providing a competitive and high-performance alternative to conventional crystalline silicon PV panels. On May 20, First Solar inked a supply agreement with Scout Clean Energy.
In detail, First Solar will be delivering 389 megawatt-direct current (MWdc) of its advanced, thin-film PV solar modules. Scout will be using these solar modules to begin the construction of several of its late-stage projects which are expected to start operations in 2024. At the moment, First Solar is the largest solar module manufacturer in the U.S., And its continuous efforts to expand its PV solar manufacturing capacity further solidifies its position. What’s more, it’s also currently investing $680 million to expand America’s domestic PV solar manufacturing capacity by 3.3 GW annually. All in all, is FSLR stock a buy?
Sunrun is a leading home solar and battery storage company. The company’s innovative home battery solution continues to bring affordable, resilient, and reliable energy to its clients. For a sense of scale, Sunrun has over 600,000 customers and has its services available across 22 states in the U.S. Through its network, the company integrates solar, storage, electrification, and virtual power plants into a smart solution for homes and communities.
On May 4, 2022, the company reported its first-quarter financials for 2022. Diving in, its solar energy capacity that was installed in the first quarter grew by 27% year-over-year, exceeding guidance. It also reported a net addition of 29,463 customers in the quarter, which adds up to a 20% year-over-year growth in customers. Along with that, its total revenue increased to $495 million during the quarter. This signals a 48% year-over-year increase. The company says that it continues to see tremendous growth across its business, as it successfully implemented meaningful pricing changes to offset higher material and capital costs. With that being said, is RUN stock worth investing in?