As solar energy becomes the go-to energy source, the time to invest in solar companies is now.
But this claim isn’t an unjustifiable one. Recent reports tell us that the solar market is growing fast. According to Allied Market Research, the global solar energy market is projected to reach $223 billion by 2026. Solar Companies in this field will directly benefit from this meteoric rise.
But what’s the reason for these projections? More so, what are the best solar companies to invest in? In this article, we will look at why solar energy is the future. More so, we will give you five solar companies to invest your money in. So without further ado, let’s get into it.
Solar Energy And the Future
Solar energy has plenty of advocates to vouch for it. After all, the sun is the largest energy source. As more companies enter the industry, it will make solar energy better and more available. Another reason why solar energy is the future is the fact that it is renewable. Batteries allow us to store energy, while panels harness the power of the sun. As is the case with copper stocks, solar energy companies are experiencing a rise.
These two technologies allow us to see the benefits of solar energy. Some of the benefits of solar energy include the following:
- Increased availability
- A great investment
If you’re not sold on the idea, then fear not as there are plenty of other ways to benefit financially from solar energy. One of those ways is to invest in solar companies. As we look to reduce our reliance on fossil fuels, solar companies will directly benefit from the much-needed change. Much like our list of 8 uranium stocks to watch out for, here is our list of the five best solar companies to invest in.
The 5 Solar Companies You Should Put Your Money Into
Here is a brief rundown of the five companies we’ve picked for this list.
- Tesla Inc (TSLA)
- SunPower Corp (SPWR)
- Shoals Technologies Group, Inc (SHLS)
- Brookfield Renewable Partners (BEP)
- Clearway Energy Inc (CWEN)
Tesla Inc (TSLA) is no stranger in the solar energy industry. It is by far one of the largest solar companies, co-founded by Elon Musk. The reason why Tesla is on this list is that it is a pioneer of the industry. Tesla Inc is most known for producing solar tiles for roofs. What this innovation hopes to accomplish is diminish a household’s reliance on other energy sources. Instead, Tesla provides renewable energy solutions in the form of a solar roof.
Besides the solar roof, Tesla is also known for its electric cars. The Tesla models also utilize solar energy as a form of fuel. This solar company is not a cheap one. Tesla Inc’s stock price sits at $1114.0, which is a single dollar short of a 52-week high.
If we look at TSLA stock in the past month, it represents a 43.7% increase. The year-to-date is a 52.36% increase. If these indications tell us anything is that Tesla Inc is the best solar company to go and invest your money in.
SunPower Corp (SPWR) is another popular solar company. But unlike Tesla, SunPower might be a better option for some of you. One of the most impressive things about SunPower Corp is that they top the charts for solar panel efficiency. Namely, their solar panel products are 22% more efficient than anything the market offers.
This does make their products more expensive, but it stands true as to why SunPower is a huge player in the solar energy industry. SPWR’s stock price comes nowhere near that of Tesla. But we have to take into account that Tesla is much more than solar panels. With all that said, the $33.66 stock price is where you should be investing your money. The one-month graph shows a 35.54% increase, while the year-to-date graph demonstrates a 32.99% increase.
All in all, SunPower Corp is a much cheaper stock that has plenty of growth potential.
Shoals Technologies Inc
Shoals Technology Inc (SHLS) is a similar solar company to SunPower, in a sense that they are both priced similarly on the stock market. But this particular company isn’t what first comes to mind when we talk about solar products. Instead of making panels or batteries, Shoals Technologies makes the solutions for solar energy projects. More specifically, they design the components necessary to carry the current from the solar panels to the grid.
As such, Shoals Technologies work on countless projects that help make solar grids more effective and operative. SHLS’s stock is priced at $30.99. There has been an upward trajectory in the past month; an 11.60% increase. The year-to-date graph, however, isn’t as impressive. With healthy ups and plenty of downs, it shows a 0.03% increase.
That shouldn’t discourage you from investing in Shoals Technologies, as there are tons of potential with this solar company.
Brookfield Renewable Partners
Brookfield Renewable Partners (BEP) continues the trend of cheap solar companies to invest your money in. What is so interesting about Brookfield Renewable Partners is that more than 20 hedge funds are investing in the Toronto-based company. Solar energy makes up a huge part of the company’s renewable solution portfolio. But Brookfield also utilizes wind energy to supply electricity to international markets.
Brookfield Renewable Partners has been outperforming the market for the past few months. A 9.20% increase in the last month is a healthy starting point, but the year-to-date score isn’t as much. The stock has a long way to go to reach the 52-week high of $49.87. While BEP stocks are currently priced at $40.10, we believe Brookfield can do much better.
The fact that Brookfield operates more than 5,900 facilities worldwide speaks volumes for the potential this publically traded solar company has. With plenty of investments backing Brookfield, it’s only a matter of time before the stock reaches a healthy new all-time high.
Clearway Energy Inc
Clearway Energy Inc (CWEN) is the last energy company on this list. They are considered a leader in the renewable energy industry by placing a strong emphasis on project development and project financing. They hold an impressive solar energy portfolio that includes both community projects and large-scale projects. Most of these projects are based in the US.
CWEN stock price is also performing spectacularly. A one-month increase of 17.44% brings the stock price to $35.47. A rocky Q2 has damaged the company’s year-to-date ratings, but that number still represents a healthy 6.01% increase. All in all, Clearwater Energy Inc is one of those solar energy companies with plenty of potentials. As such, you should consider investing your money in it.
As the hype around solar energy continues to rise, solar companies will inevitably benefit from it. Since we’re looking at renewable solutions to meet our increasing energy demands, solar energy is no doubt up there as the best one.