Growth in the US solar energy market is expected to skyrocket in the coming years. Get ready by checking out the top US solar energy stocks.
Despite the current political environment, the top US solar energy stocks still offer opportunities for investors looking to enter this clean energy sector.
According to the most recent report from the Solar Energy Industries Association (SEIA), during Q1 2020 solar accounted for 40 percent of new electricity-generating power. The US solar market installed 3.6 gigawatts (GW) of solar capacity during that period, making it the largest first quarter on record.
For the whole of 2020, Wood Mackenzie expects to see 33 percent annual growth in new solar installations to total 18 GW of added electricity-generating capacity. For its part, the SEIA is projecting nearly 20 GW of new solar installations for this year.
Over the next five years, the SEIA is projecting that the US solar market will add 113 GW of capacity. “By 2025, one-third of new residential solar systems and one-quarter of new non-residential solar systems will be paired with energy storage,” states the association in its report.
Top US solar energy stocks to consider
While the global COVID-19 pandemic has disrupted growth in markets across the board, the upside potential in the US solar energy market still exists. Evidence of this can be seen in SunRun’s (NASDAQ:RUN) recent US$3.2 billion all-stock plan to buy Vivint Solar (NYSE:VSLR).
Even though the costs involved in producing electricity from solar energy are higher than they are for traditional sources, companies in the sector have a number of financial benefits. These include government subsidies and tax credits to encourage the production of clean energy sources.
To help investors learn more about individual solar companies, the Investing News Network has put together a list of the top US solar energy stocks. The companies below are listed on the NASDAQ and NYSE, and were generated using MarketWatch’s stock screener. Companies are posted in alphabetical order, and numbers were current as of market close on July 14, 2020.
1. Azure Power Global (NYSE:AZRE)
Market cap: US$801.63 million
Based in New Delhi, India, Azure Power Global is a producer and developer of solar energy. The company’s services include designing, engineering, constructing, maintaining and operating grid-integrated solar energy projects for customers worldwide. These projects range from utility-scale to micro-grid to rooftop solar installations.
Azure Power offers solar power solutions to government utilities and independent industrial and commercial customers based on long-term, fixed-price contracts. It operates over 37 utility-scale projects and several commercial rooftop projects with a combined rated capacity of about 1,011 megawatts.
2. Clearway Energy (NYSE:CWEN)
Market cap: US$4.6 billion
Clearway Energy owns, operates and acquires contracted renewable and conventional energy-generation and thermal infrastructure assets across the US. The electric utility company’s operations include conventional generation, renewables and thermal power.
Clearway Energy, which bills itself as being “built for 21st century energy markets,” prides itself on providing customers with low-cost clean energy generated from solar and wind installations across North America. The company’s portfolio includes more than 7,000 megawatts of wind-, solar- and natural gas-fired power-generation facilities, as well as district-scale energy systems.
3. Ellomay Capital (NYSEAMERICAN:ELLO)
Market cap: US$281.44 million
Ellomay Capital is based in Israel, but its shares trade on the NYSEAMERICAN. 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 Dorad and a 75 percent interest in a project to build a pumped storage hydropower plant in Israel with a peak generating capacity of 340 megawatts. Several of Ellomay’s solar projects have power purchase agreements of 20 years.
4. Sky Solar Holdings (NASDAQ:SKYS)
Market cap: US$114.98 million
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.
Taking a closer look at its balance sheet, since the beginning of 2015 the company’s operating income has primarily been driven from revenue from solar power generation. It has developed more than 300 solar power plant projects and parks around the world.
5. SunRun (NASDAQ:RUN)
Market cap: US$4.05 billion
SunRun is one of the leading home solar panel, battery storage and energy services companies in the US. Founded in 2007, the San Francisco-based company provides residential solar electricity via installing, monitoring and maintaining solar panels on homeowners’ rooftops. SunRun is a pioneer in home solar service plans, making local clean energy more accessible with no upfront costs. The company’s Brightbox home battery solution allows customers to access affordable and reliable energy.
SunRun’s plan to buy Vivint Solar, the number two company in the US solar energy sector by market share, will allow for the creation of a new solar energy giant in the US residential solar market.
6. VivoPower International (NASDAQ:VVPR)
Market cap: US$23.52 million
Closing out this top 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 began 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 for 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.
Investors who don’t want to focus on specific stocks may want to consider exchange-traded funds (ETFs). Within the solar sector, there is only one solar energy ETF, the Invesco Solar ETF (ARCA:TAN). It tracks the MAC Global Solar Energy Index, and offers exposure to a broad basket of solar energy companies.
This is an updated version of an article originally published by the Investing News Network in 2017.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.