Best Solar Stocks To Invest In

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Solar stocks have boomed and busted as investors excitedly pile into them only to see their potential pushed further down the road.

Unlike the electric vehicle market, which has finally gained traction, solar companies–and renewable energy companies in general–haven’t yet reached the point where widespread deployment is inevitable.

However, for patient investors who pick the right stocks, solar may eventually produce sizable investment returns. Solar stocks certainly carry a lot of risk, as there are plenty of unknowns ahead. But over the long run, if solar catches on, winning stocks in the sector could catch fire as well.

With the green energy future in mind, here are some of the top solar companies to invest in, along with the factors affecting their potential.

Best Solar Stocks in 2025

Solar panel stocks were chosen based on industry position, revenues, future growth prospects and earnings projections and ratings from Wall Street analysts. You should also do your due diligence before buying any stock.

1. Enphase Energy Inc. (ENPH)

• Price as of Apr. 21, 2025: $51.62

Enphase Energy provides a complete home solar solution that includes everything from solar power generation to storage in a single platform. Roughly half of the analysts following the stock rate it a “hold,” but the average 12-month price target is an optimistic $71.30.

The stock has had a rough run over the last few years, underperforming the S&P 500 on a YTD, 1-year, 3-year, and 5-year basis, per Yahoo Finance.

Believers in the long-term future of Enphase, however, may find this to be an attractive entry point.

2. Sunrun Inc. (RUN)

• Price as of Apr. 21, 2025: $6.57

Sunrun is the biggest solar company when it comes to panel installation, making it worth a look for those wanting exposure to the space. In 2020, the company acquired its largest competitor, Vivint, further establishing Sunrun as the No. 1 installer. The vast majority of Sunrun customers lease their panels from the company rather than buy them outright.

This solar panel stock has posted solidly negative returns on a YTD, 1-year, 3-year and 5-year basis. However, 15 of 26 analysts following the stock have a “buy” or “strong buy” rating on it, and the average price target is roughly double the current share price one year out.

3. First Solar Inc. (FSLR)

• Price as of Apr. 21, 2025: $122.45

First Solar is one of the few solar companies that don’t rely on polysilicon for their panels, which helped it avoid some of the supply chain issues that plagued its competitors during and after the pandemic. First Solar uses cadmium-telluride technology, and it mainly produces its panels in the United States, which also means the company can avoid the issues surrounding China.

First Solar’s stock has done well for patient, long-term investors. While it has had a rough year, FSLR’s returns over three and five years are trouncing the S&P 500’s.

In the analyst community, 34 rate the stock “buy” or “strong buy,” with only five offering lesser ratings. The average one-year price target is $231.38.

4. Array Technologies Inc. (ARRY)

• Price as of Apr. 21, 2025:

Array Technologies offers investors the chance to bet on technology rather than the nitty-gritty of solar panels themselves. The company’s main competitive advantage is its proprietary tracking technology, which turns solar panels toward the sun as it moves across the sky, thereby improving the panels’ efficiency.

Half of the analysts covering the stock have “buy” or “strong buy” ratings on the company, with an average price target about double current levels. However, investors should be aware that this is a speculative company that has lost investors more than 85% of their money over the last five years.

5. Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI)

• Price as of Apr. 21, 2025: $23.46

Investors looking for a slightly different angle on the solar industry might consider Hannon Armstrong. Rather than being a direct play on solar energy equipment or production, Hannon Armstrong is a real estate investment trust that owns various companies in the renewable energy space.

This stock is more of a dividend play, although it also offers the opportunity for capital appreciation.

Hannon Armstrong pays a current yield of 7.16%, and 15 of 17 analysts recommend the stock. The average one-year price target is $38.50.

6. SolarEdge Technologies Inc. (SEDG)

• Price as of Apr. 21, 2025: $12.10

Solar storage has long been the industry’s pet peeve. Although solar panel technology continues to advance exponentially, storing the energy produced becomes problematic. SolarEdge Technologies is one of the companies working on solving that problem, providing traditional solar services along with battery storage.

So far, SolarEdge hasn’t lived up to its promise. Investors who have held the stock for the last three years have lost an incredible 95% of their principal. However, analyst forecasts indicate there could be some sizable capital gains ahead if the company can turn things around. The consensus 12-month price target of the analysts following the stock is $16.19, suggesting a potential one-year gain of 34%. Those analysts also have a consensus “hold” rating on the company.

Why Invest in Solar Stocks?

Solar stocks offer the potential for massive growth. According to the U.S. Energy Information Administration, solar currently only provides about 3.9% of the power in the United States, but that number has been steadily growing. Some projections put solar usage at 20% of U.S. energy by 2050, and it may reach much higher levels on a regional basis. In California, for example, solar already accounts for 27.3% of total energy.

Although solar will always be a political and legislative football, it’s clear that solar technology is developing rapidly, and its usage is expanding. If solar companies can continue to make panels more efficient and cost-effective and solve the problems of storing energy, solar growth could be explosive over the long term.

Solar Stocks vs. Other Investment Options

As solar investing can be particularly volatile, you might consider some other investment options or strategies to allow you to sleep at night.

Buying multiple stocks in the industry can give you exposure to a wider range of solar options and technologies, reducing your risk and increasing your chance of finding the sector’s winners.

If you want to truly diversify your portfolio, you can add individual stocks from other industries. This can help balance out your account’s ups and downs while still offering upside potential. Traditional energy stocks, such as oil companies, may trade down when solar stocks rally, and vice versa, but both can offer long-term growth.

If you’re more risk-averse, you can purchase mutual funds or ETFs. With a single purchase, you can own tens, hundreds or even thousands of investments, diversifying your risk but providing you with a more average return. You can choose from green energy funds or ETFs that invest in solar and other climate-friendly technologies like wind, or you can pick diversified stock funds that own companies in a wide variety of industries.

Risks of Investing in Solar Stocks

There are many levels of risk involved in solar stock investing. In addition to general market volatility, solar stocks don’t generally have a predictable earnings stream. In fact, many solar panel stocks and companies still aren’t even profitable. There are also geopolitical risks, particularly with the Trump Administration rolling out tariffs and the uncertainty of its policy towards green energy companies going forward.

The field is also getting fairly crowded, with many companies hoping to strike gold in the new era of “green energy.” Add in the fact that this industry tends to attract “hot money,” or investors who rapidly invest in or pull away from the stocks, and it adds up to a volatile cocktail.

Just like with any other type of investment, finding the best solar companies to invest in can be tricky. Do your research before putting your money on your pick for the best solar panel stocks.

Trends Shaping the Solar Industry in 2025

Probably the biggest single factor affecting the solar industry in 2025 will be how the Trump Administration’s tariff policy plays out. Although tariffs on Chinese solar companies could help domestic producers, American solar companies also get a lot of their components from China, so tariffs could be a double-edge sword. How the policy will ultimately play out is anyone’s guess.

Another factor could be the Trump Administration’s policy towards green energy. The President has hinted that he wants to amend or even repeal the Inflation Reduction Act, which provided major tax credits to clean energy companies. He has also spoken repeatedly about how he favors oil and gas over renewables.

High interest rates could also continue to hurt solar companies if they persist throughout 2025, according to Barron’s.

How To Buy Solar Stocks

Here’s how you can buy solar stocks:

• Pick a broker: Most firms offer a zero-commission trading option for stocks. If you’re going to be dabbling in the solar industry, you might also want to find one that has a good research department covering the sector, as information on solar stocks can be harder to get than for traditional blue-chip stocks.
• Research your options: The solar industry is quite diverse when it comes to its individual companies. Some focus on building solar panels, others are working on batteries and energy storage, while still others are technology-focused, working on mechanisms that can help other solar companies become more efficient and effective.
• Choose your allocation: Even if you’re extremely bullish on solar, most advisors would recommend that you don’t put all your eggs in one basket. Decide how much you’re willing to risk in this volatile sector in relation to your overall portfolio. Include how much you want to put in individual stocks, mutual funds, and/or ETFs.
• Find the relevant ticker symbols: Each stock, ETF and mutual fund has a ticker symbol that you’ll need to know if you want to enter a trade.
• Enter your trade(s): Using your broker’s no-commission, online trading platform, enter your trade(s).

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Apr. 21, 2025 and was sourced using Yahoo! Finance and Google Finance.

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