Growth in solar energy is expected to skyrocket in the US in the coming years — get ready by checking out these US solar energy stocks.
As the Trump Administration repeals the Clean Power Plan, the US House Democrats announced more “realistic” carbon emission goals in July, aiming to bring levels to net zero by 2050 instead of 2030.
Climate change revisions have peppered the presidency of Donald Trump, and the effects are far from predictable for the solar industry. Despite the 30 percent tariffs the Trump administration slapped on solar panels in early 2018, the US added more solar power than any other type of electricity in the first quarter of 2018. Wood Mackenzie projects a 25 percent growth in the solar market in 2019. Within the next five years, solar installations are expected to double in the US.
According to the most recent report from the Solar Energy Industries Association (SEIA), the US solar market’s capacity increased 13 percent year-on-year in Q1 2018, accounting for 55 percent of all US electricity added during the period, including fossil fuels and other forms of renewable energy. In the first quarter of 2019, the solar market in the US reached record levels of solar installations. The demand for clean energy is creating new energy sources and opportunities for solar companies.
“Voluntary procurement of utility PV based on its economic competitiveness continues to be the primary driver of projects announced in 2019,” Wood Mackenzie Senior Solar Analyst Colin Smith said in SEIA’s report.
The news shouldn’t be surprising for those watching the space. Indeed, Advanced Energy Now projects that the rooftop solar market will reach US$4.14 billion by 2022, growing at a compound annual growth rate of 9.7 percent until then. The financial impact of this growth will help bolster solar companies’ balance sheets and the sector as a whole.
To help investors learn how to take advantage of the growing solar power market, the Investing News Network has put together a list of nine potentially up-and-coming US solar energy stocks. All trade on American stock exchanges and had market caps below US$500 million at the time of publication. All numbers and figures are accurate as of market close July 23, 2019.
1. Amtech Systems (NASDAQ:ASYS)
Market cap: US$82.59 million; current share price: US$5.80
It’s been over three decades since Amtech Systems was incorporated, first as Quartz Engineering and Materials. The company went public in 1983, and has grown into a global supplier of solar and semiconductor production and automation systems.
Amtech Systems provides supplies for manufacturing solar cells, semiconductors and silicon wafers, and has six subsidiaries, including:
- Tempress Systems, which provides services for the solar cell and semiconductor industry
- PR Hoffman Machine Products, which designs, manufactures, sells and installs double-sided precision lapping and polishing machines
- Bruce Technologies, which provides services for semiconductor diffusion furnaces
- R2D Automation, which sells wafer automation and handling equipment for the solar and semiconductor sectors
- Solatec, a developer and provider of spatial atomic layer deposition
- BTU International, a supplier of thermal processing equipment solutions
2. Azure Power Global (NYSE:AZRE)
Market cap: US$449.39 million; current share price US$10.95
Azure Power Global is based in India, serving as the first solar power company to provide services at scale. In operation for over 10 years, Azure Power has over 35 solar power projects that adjust according variables, This includes the sun’s seasonality to improve efficiencies and offer power alternatives at competitive costs.
Governmental policies in India have bolstered and supported the solar energy market, including the 2010 Jawaharlal Nehru National Solar Mission, which aimed to promote solar power in India.
The company’s projects include providing solar rooftop solutions to commercial and governmental agencies.
3. Ellomay Capital (NYSEAMERICAN:ELLO)
Market cap: US$140.03 million; current share price: US$13.11
The next company on this US solar energy stocks list is Ellomay Capital. The company is based in Israel, but its shares trade on the NYSE American. For nearly a decade, its focus has been on the energy and infrastructure sectors.
The company’s primary assets include roughly 12 photovoltaic (PV) plants in Italy, four PV plants in Spain, a 9.4 percent indirect holding in the Dorad project and a 75 percent interest in a project to build a 340 megawatt pumped storage hydropower plant in Israel.
4. ReneSola (NYSE:SOL)
Market cap: US$41.89 million; current share price: US$1.10
ReneSola is another company with headquarters in China. ReneSola began trading on the NYSE in 2008, but was founded a few years earlier in 2005.
The company has offices and warehouses in over 10 countries and provides energy efficient products. More specifically, RenSola’s products can be broken down into energy storage systems, inverters, wires and cables, solar racking systems and solar panels.
5. Sky Solar Holdings (NASDAQ:SKYS)
Market cap: US$28.32 million; current share price: US$0.54
Sky Solar Holdings is based in Hong Kong and has traded on the NASDAQ since November 2014. The company’s primary focus is on the downstream solar market, and it mostly develops projects in Asia, South America and North America.
Since the beginning of 2015, the company’s operating income has primarily come from solar power generation revenue. It has developed more than 198 solar power plant projects around the world.
6. Spi Energy (NASDAQ:SPI)
Market cap: US$30.62 million; current share price: US$2.11
Spi Energy is also headquartered in Hong Kong and provides PV solutions for business, residential, government and utility customers. Its primary focus is on the downstream PV market, including the development, financing, installation, operation and sale of utility-scale and residential solar power projects. These projects can largely be found in China, Japan, Europe and North America.
Its portfolio features projects in varying stages of development, from operation to construction.
7. Sunworks (NASDAQ:SUNW)
Market cap: US$13.73 million; current share price: US$0.49
Next on this US solar energy stocks list is Sunworks, which was founded in 2002 and is headquartered in California.
Sunworks provides solar power systems for residential, commercial and agricultural markets in California as well as Nevada. It has roughly 64 projects divided between the two states and has installed more than 850 systems.
The company designs, integrates, installs and manages systems that range in size from 2 kilowatts for residential loads to multi-megawatt systems for larger commercial projects.
8. VivoPower International (NASDAQ:VVPR)
Market cap: US$17.82 million; current share price: US$1.31
Closing out this US solar energy stocks list is VivoPower International. VivoPower was originally founded in 2014, and formed VivoPower in Australia and Asia that same year. By 2016, VivoPower was established in the UK and US, and had begun trading on the NASDAQ. The company is principally engaged in solar electricity generation facilities across many stages of development. With its global reach, VivoPower provides everything from the construction and operation of various solar projects.
VivoPower also provides financing, consulting, engineering and project management services for other developers. It holds a number of subsidiaries such as VivoRex, VivoPower USA and VivoPower International Services.
This is an updated version of an article originally published by the Investing News Network in 2017.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.