With the growth of the solar energy expected to skyrocket in the US over the next several years, here’s a look at US solar energy stocks for consideration.
While it’s impressive that the US solar energy sector grew by 95 percent in 2016 compared to 2015, estimating its capacity over the last decade has proven to be somewhat difficult.
Last year, the country’s solar energy industry “nearly doubled its annual record,” according to an early 2017 report from Green Tech Media, totaling 14,626 megawatts of solar Pv installed compared to 7,493 megawatts installed in 2015.
That being said, however, the US Energy Information Administration (EIA) vastly underestimated its capacity between 2006 and 2016–which was 4,813 percent more last year than initially predicted by the EIA.
In terms of its overall market outlook, it shouldn’t be surprising that the solar energy sector is going to grow even more than it already has. Advanced Energy Now projects the solar rooftop market will reach $4.14 billion by 2022, growing at a compound annual growth rate (CAGR) of 9.70 percent until then.
With North America accounting for a large portion of the market growth, here the Investing News Network (INN) profiles 10 US solar energy stocks that trade on US stock exchanges who may be smaller in market cap size, but no doubt poised to contribute to solar energy’s growth over the next several years. All companies below have market caps of less than $500 million as of October 18, 2017 with data compiled by Google Finance and Investsnips.
Here’s a closer look at those companies.
1. Amtech Systems (NASDAQ:ASYS)
Market cap: $156.59 million; current share price: $10.63
The first on our US solar energy stocks list is Amtech Systems. It’s been over 3 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 its supplies for manufacturing solar cells, semiconductors and silicon wafers, and has six subsidiaries, including:
- Tempress Systems B.V., which provides services for the solar cell and semiconductor industry;
- P.R. Hoffman Machine Products, who 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; and
- BTU International, a supplier of thermal processing equipment solutions.
2. Daqo New Energy (NYSE:DQ)
Market cap: $510.14 million; current share price $48.50
Daqo New Energy is a manufacturer of high-purity polysilicon for the global solar PV industry and sells its products to solar cell and solar module manufacturers.
Headquartered in China, the company was founded in 2008 and has branched out to include subsidiaries such as: Daqo New Energy Holdings, Daqo New Material, Xinjian Daqo New Energy, and Chongqing Daq New Energy.
3. Ellomay Capital (NYSEA:ELLO)
Market cap: $101.45 million; current share price: $9.50
The next on our US solar energy stocks list is Ellomay Capital, a company based in Israel but who trades its shares on the NYSE MKT. For nearly a decade, the company’s focus has been on the energy and infrastructure sector.
The company’s primary assets include roughly 12 photovoltaic plans in Italy, four photovoltaic plants in Spain, and 9.4 percent indirect holdings with Dorad, and a 75 percent interest in a project to build a 340 MW pumped storage hydro power plant in Israel.
4. Enphase Energy (NASDAQ:ENPH)
Market cap: $211.27 million; current share price: $2.47
Founded in 2006, Enphase Energy designs, develops, manufactures and sells microinverter systems to the solar photovoltaic industry.
Its products range from AC modules, microinverters, storage, envoy, and enlighten and apps. More specifically its microinverter system is made up of three parts: Enphase microinverters, Envoy gateway and Enlighten cloud-based software.
Currently, the company has operations in 21 countries, more than 140 issued patents and 15 plus million inverters shipped worldwide.
5. JA Solar Holdings (NASDAQ:JASO)
Market cap: $353.55 million; current share price: $7.43
Middle of the pack on our US solar energy stocks list is JA Solar Holdings. While the company is based in Shanghai, JA Solar Holdings has been trading on the NASDAQ for over a decade, with its IPO on February 16, 2007.
In simple terms, JA Solar Holdings designs and sells solar power products that turn sunlight into electricity. One of the company’s main focuses is on providing modules with unparalleled conversion efficiency, yield efficiency, and reliability to help customers maximize their PV projects.
6. ReneSola (NYSE:SOL)
Market cap: $112.02 million; current share price: $2.94
ReneSola is another company with headquarters in China, although it trades on the New York Stock Exchange. ReneSola began trading on the NYSE on February 8, 2008 although it was founded a few years earlier in 2005.
The company has offices and warehouses in over 16 countries and provides energy-efficient based products. More specifically, RenSola products can be broken down into energy storage systems, inverters, wires and cables, solar racking systems and solar panels.
7. Real Goods Solar (NASDAQ:RGSE)
Market cap: $10.84 million; current share price: $1.30
With headquarters in Denver, Colorado, Real Goods Solar was founded in 1978 and is a residential solar power integrator company. Over 35 years ago, the company allegedly sold some of the first solar panels out of a general store in Northern California, and has since then installed more than 25,000 solar energy systems in homes, businesses, schools, government facilities and utilities across the US.
That said, its solar panel installation services are available in California, Colorado, Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.
8. Sky Solar Holdings (NASDAQ:SKYS)
Market cap: $76.96 million; current share price: $1.47
Sky Solar Holdings is based in Hong Kong and has been trading on the NASDAQ since November 2014. The company’s primary focus is on the downstream solar market while mostly developing 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, and has developed more than 198 solar power plant projects around the world.
9. Spi Energy (NASDAQ:SPI)
Market cap: $43.50million; current share price: $0.60
Spi Energy is also headquartered in Hong Kong and provides photovoltaic solutions for businesses, residential, government, and utility customers. Its primary focus is in the downstream PV market, such as development, financing, installation, operation and sale of utlility-scale and residential solar power projects. Largely, those projects can be found in China, Japan, Europe and North America.
To that end, its portfolio of projects includes those in varying stages of development, including those in operation, under construction or in the pipeline.
10. Sunworks (NASDAQ:SUNW)
Market cap: $23.13 million; current share price: $1.03
Closing out our US solar energy stocks list is Sunworks, founded in 2002 and whose headquarters are in California.
Sunworks provides solar power systems for residential, commercial and agricultural markets in California as well as Nevada and has roughly 64 projects divided between the two states and has installed more than 850 systems.
The company designs, arranges financing, integrates, installs, and manages systems that range in size, from 2 kilowatts for residential loads to multi megawatt systems for larger commercial projects.
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This is an update to an article originally published in 2017.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.