Part 2 - Some names to add to your watch in the Solar Industry
Part 2 - Some names to add to your watch in the Solar Industry
In our earlier article we discussed why Renewable energy is an industry to watch and potentially add to your portfolio.
When talking about renewable energy, there are many kinds: Solar, Wind, Natural Gas. When adding energy to your portfolio, you can go about it in many ways.
You can invest in:
Solar
Components used with the hardware (energy converters, optimizers)
Hardware (panels)
Multi-Operators
Produce multiple forms of renewable energy
Here are the top 5 stocks for renewable energy including hardware manufacturers based on our own research:
NextEra Energy (NEE)
Enphase Energy (ENPH)
SolarEdge Technologies (SEDG)
First Solar (FSLR)
SunPower (SPWR)
Components:
Enphase Energy is a leading solar microinverter manufacturer. Microinverters take energy produced from solar panels and convert it to electricity which can be used in homes and businesses.
Compared to others on the list, Emphase saw nearly 200% increase in 2022. In 2022, some states reduced tax credits given. Enphase being a component manufacturer benefited as home owners sought to invest back in their homes.
Microinverters convert direct current (DC) electricity from solar panels into alternating current (AC) electricity that can be used in homes and businesses. Enphase Energy's micro inverters are highly efficient and reliable, and the company has a strong market share in the solar microinverter market.
SolarEdge Technologies is a leading manufacturer of solar inverters and power optimizers. Power optimizers improve the efficiency of solar panels by optimizing the power output of each panel.
Solar inverters convert DC electricity from solar panels into AC electricity that can be used in homes and businesses.
In the span of 4 months (October - February) SolarEdge price increased 80%.
The Hardware (Panels):
First Solar is a leading manufacturer of thin-film solar panels. Thin-film solar panels are made of a thin layer of semiconductor material, such as cadmium telluride or copper indium gallium selenide. Thin-film solar panels are cheaper than traditional crystalline silicon solar panels, and they are also more efficient in low-light conditions. First Solar has a strong market share in the thin-film solar panel market.
With a 200+% increase, a breather in FSLR is warranted. A stock to keep on the radar as it has gained a lot of traction in a short span of time.
SunPower is a leading manufacturer of solar panels and solar systems. SunPower's solar panels are highly efficient and reliable, and the company has a strong market share in the solar panel market. SunPower also offers a variety of solar systems, including rooftop solar, rooftop solar and carports.
A solar provider with a differentiated offering is something enticing for investors in the renewable energy space.
Unlike previously mentioned renewable companies, SunPower has been in a decline while others are slightly off their peak. As an investor, something to take note of whether this is the bottom before SunPower starts another run like in Q4 ‘21 and again in Q3 ‘22.
Multi-operators:
NextEra Energy is the largest renewable energy company in the United States. It owns and operates a diversified portfolio of solar, wind and natural gas plants. The company has a strong track record of growth and is well-positioned to capitalize on growing renewable energy demand. They have also seen 30% growth in a row within months.
These companies are all leaders in the renewable energy industry and have a strong track record of growth. They are also well-positioned to benefit from growing renewable energy demand.
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