Top 4 Solar Stocks to Watch in 2025 and Why They Matter
Disseminated on behalf of SolarBank Corporation.
Solar energy is a key player in the global shift toward clean and sustainable power. Governments and businesses want to cut carbon emissions and reach net-zero goals and solar power offers a dependable and scalable solution.
Solar energy’s explosive growth and cutting-edge tech make it an investment to watch. This article will uncover the top solar stocks to keep on your radar this 2025 and beyond.
The Sun-Powered Revolution: Why Solar Energy Matters
Solar energy harnesses the power of the sun to generate electricity, offering a clean and inexhaustible energy source. This clean power is different from fossil fuels because it doesn’t produce greenhouse gas emissions when used. This makes it a key solution for fighting climate change.
Solar installations can be scaled up easily, from home rooftops to large utility-scale farms. This flexibility allows solar energy to be used in many sectors.
The International Energy Agency (IEA) predicts that solar photovoltaic (PV) capacity will grow over 20% each year. By 2030, global solar capacity is set to exceed 2,600 GW. This fast growth comes from lower costs, better efficiency, and strong government support around the world.
Recently, the cost of solar photovoltaic (PV) technology has dropped a lot. This makes it more competitive with traditional energy sources.
The National Renewable Energy Laboratory (NREL) reports that in 2023, renewable energy facilities, like solar, generated more electricity than both nuclear and coal sources. This shows the growing role of renewables in the energy mix.
Government Policies and Market Growth
Governments worldwide are implementing policies to accelerate the transition to renewable energy. The U.S. Inflation Reduction Act (IRA) provides billions of dollars in tax credits and incentives for solar power adoption. The IRA is under evaluation by the new administration but presently the tax credits components are expected to be maintained.
In Europe, the EU aims to install 320 gigawatts (GW) of solar capacity by 2025 and 600 GW by 2030. Meanwhile, China, the world’s largest solar market, added over 200 GW of new solar capacity in 2023 alone, marking an all-time high.
The IEA projects that solar energy will become the largest source of electricity by 2050. It will supply more than 50% of global power demand. This policy-driven growth strengthens the case for investing in solar stocks.
Solar Stocks: A Smart Bet on a Sustainable Future
Investing in solar stocks allows you to join a fast-growing industry focused on sustainability. More people are choosing solar energy due to helpful government policies, businesses’ commitment to being green, and greater public concern for the environment.
Financially, the solar sector has demonstrated resilience and growth. The upward trend suggests robust demand and a favorable market environment for solar companies.
Key Investment Drivers for Solar Stocks
- Cost Declines: The cost of solar modules has fallen by more than 80% in the last decade.
- Tech giants such as Google, Amazon, and Microsoft are making big moves. They are signing large solar power purchase agreements (PPAs) to cut down on their carbon footprints.
- Energy Security: Solar power offers energy independence. It cuts down our reliance on fossil fuels and unstable global energy markets.
Top Solar Stocks to Watch in 2025
Here are four leading solar companies that are helping advance the clean energy transition:
1. First Solar (FSLR): Scaling Sustainable Solar with Advanced Thin-Film Tech
First Solar is a leading American solar technology company specializing in the manufacture of thin-film photovoltaic modules. The company is known for its advanced thin-film cadmium telluride (CdTe) technology. It has a lower carbon footprint and works better in high heat than traditional silicon panels.
The company reported $3.2 billion in net sales for 2023, a 37% increase year-over-year. It plans to invest over $1.1 billion in expanding its US manufacturing footprint.
As of September 2024, First Solar inaugurated a new facility in Alabama, adding 3.5 gigawatts (GW) to its U.S. manufacturing capacity (10GW). The company aims to have a total annual nameplate capacity of approximately 25 GW in the U.S. by 2026.
Key Projects
- Series 7 Modules: First Solar’s Series 7 modules use advanced thin-film CdTe technology. This boosts efficiency and makes installation easier for utility-scale projects. Made in the U.S., they support domestic manufacturing.
- Luz del Norte Project: Located in Chile, this project is one of Latin America’s largest photovoltaic solar power plants. The project covers 478 hectares and has a capacity of 141 megawatts (MW). It uses more than one million First Solar modules to generate alternating current (AC).
Sustainability Initiatives and Emissions Reduction Impact
First Solar focuses on low-carbon solar production. This cuts down environmental harm and boosts social and economic gains.
- Since 2009, the company has cut greenhouse gas emissions by 64% per watt, energy use by 43%, and water consumption by 45%. Its recycling program recovers 90% of semiconductor material for reuse.
By 2026, First Solar plans to reach 25 GW of global manufacturing capacity. They will produce solar panels with a carbon footprint 2.5 times lower than traditional crystalline silicon modules. Their thin-film technology creates clean electricity. It does this without emissions, water use, or hazardous waste. This helps businesses move away from fossil fuels.
In 2023, First Solar’s module recycling program achieved a global material recovery rate of 95%. This includes materials like glass, aluminum, steel, laminate, and semiconductor materials.
All these achievements highlight First Solar dedication to sustainable manufacturing. They also show their part in moving the world towards clean energy.
2. Enphase Energy (ENPH): A Leader in Smart Solar Technology
Enphase Energy leads the world in solar microinverter tech and energy management. The company offers advanced solar inverters, battery storage, and smart energy solutions. These products improve the efficiency and reliability of solar power.
Enphase’s microinverters stand out from traditional string inverters. They optimize each solar panel on its own. This boosts power generation and improves overall system performance.
The company operates in North America, Europe, and Asia-Pacific. It is leading the move to smart, efficient, and reliable solar energy for homes, businesses, and utilities.
Key Achievements and Growth
- Strong Revenue: Generated $382.7 million in revenue in Q4 2024.
- Battery Storage Expansion: Shipped around 170 megawatt hours of IQ Batteries.
- International Expansion: Expanded its operations in Europe and Australia to meet rising solar demand.
Enphase has shipped over 75 million microinverters and has more than 3.5 million solar systems installed worldwide.
Moreover, the company spends more than $250 million each year on research and development (R&D). This investment aims to improve product efficiency and software capabilities.
Innovative Solar and Storage Solutions
- Enphase’s flagship IQ8 microinverter is one of the most advanced in the industry. It enables solar panels to generate energy even during grid outages.
- Enphase Energy System combines solar, battery storage, and smart energy management. This setup ensures clean power is available all day, every day.
- In 2023, Enphase introduced new battery storage solutions. These offer better capacity and efficiency. Homeowners and businesses can now access solar-plus-storage options.
Sustainability and Net-Zero Commitment
Enphase plays a crucial role in reducing carbon emissions through its smart solar technology. The company aims to achieve a 30% reduction in its economic emissions intensity by 2030. Its key contributions include:
- Boosting solar energy: Microinverters increase panel efficiency by 5-15%. This helps ensure maximum clean energy output.
- Boosting grid stability: Enphase’s smart energy management tools cut down on fossil fuel use.
Enphase’s solar technology has cut CO₂ emissions since it started. It has helped prevent over 56 million metric tons of carbon. That’s like taking 11+ million cars off the road.
The company is also working to reduce its own carbon footprint, aiming for net-zero emissions across its operations by 2040. Enphase is changing solar energy with its microinverter technology and smart energy systems. They make solar power generation, storage, and usage better.
3. Daqo New Energy Corp (DQ): A Key Player in the Solar Supply Chain
Daqo New Energy Corp is a leading manufacturer of high-purity polysilicon, the essential raw material used in solar panels. The company is vital in the global solar industry. It supplies high-quality polysilicon to leading solar panel makers.
Founded in 2007, Daqo runs a top-notch and cost-effective polysilicon plant. This facility plays a key role in making solar energy more affordable and scalable.
Key Achievements and Projects:
- Daqo makes electronic-grade polysilicon with purity of over 99.9999%. This includes 6N and 9N grades, which are among the purest in the industry.
- In 2023, Daqo produced over 133,812 metric tons of polysilicon, supplying top-tier solar companies worldwide.
- The company has cut production costs to about $6.80 per kilogram. This change makes solar energy more affordable.
Expansion and Strategic Partnerships
Daqo has been expanding aggressively to meet rising global solar demand. The company just finished the Phase 5A expansion. This boosts production capacity to 205,000 metric tons each year. It has announced Phase 5B expansion, which will further boost capacity to over 300,000 metric tons by 2025.
Daqo has long-term supply deals with top solar panel makers like LONGi Green Energy, JA Solar, and Trina Solar. In 2023, the solar company signed multiple contracts worth over $18 billion to supply polysilicon for the next five years.
Daqo New Energy Milestones
Sustainability and Net-Zero Commitment
As a key part of the solar supply chain, Daqo New Energy is committed to reducing the carbon footprint of solar panel production. The company has focused on energy-efficient manufacturing processes to lower emissions.
- Daqo’s recent upgrades have lowered energy use per kilogram of polysilicon by 30%.
This change also cuts down on its environmental impact. The company has also invested in green energy sources, ensuring that a portion of its power comes from renewable sources.
Its high-purity polysilicon boosts solar panel efficiency. This helps customers create more electricity while using fewer materials. As a result, overall emissions are reduced. This directly contributes to the global net-zero goal, making renewable energy more widespread and accessible.
4. Solar Bank (NASDAQ: SUUN): A Rising Player in Solar Energy Development
SolarBank Corporation is a top renewable energy developer and a rising player among these solar stocks. They focus on community and distributed solar projects in Canada and the U.S. The company also offers battery storage and EV charging solutions. Their clients include utilities, businesses, municipalities, and homeowners.
Key Financial Growth
In the fourth calendar quarter of 2024, SolarBank secured over $68 million in financial commitments from strategic and financial partners. Major transactions include:
- $49.5 million deal with Qcells for four solar projects in New York, using U.S.-manufactured solar modules.
- $18.5 million (Cdn $25.8 million) project finance facility from Royal Bank of Canada to fund two battery energy storage projects.
- $32 million (Cdn $45 million) valued acquisition of Solar Flow-Through Funds Ltd., expanding its renewable energy footprint.
SolarBank boosted its market presence by listing on the Nasdaq Global Market. This move improved its financial standing and access to capital. In addition, it secured a Cboe Canada listing in 2024, reinforcing its position as a major renewable energy developer.
Expanding Renewable Energy Portfolio
SolarBank has completed over 100 MW of solar projects and has a pipeline exceeding 1 GW. Key projects include:
- $41 million EPC contract with Honeywell: Three community solar projects are now mechanically complete. SolarBank will handle operations and maintenance.
- Geddes Solar Project (3.7 MW DC) in New York: Expected to provide green energy to 500 homes.
- Greenville Community Solar (14 MW DC): Will serve 1,600 homes in New York.
- Nova Scotia Community Solar Program (31 MW DC): Developed in partnership with TriMac Engineering, supplying green energy to 4,000 homes.
Future Expansion and Data Center Integration
SolarBank is looking into the data center sector. They want to provide sustainable energy solutions for AI and high-performance computing. Right now, there are no data center projects underway. However, the company is exploring possible partnerships.
Sustainability and Clean Energy Impact
SolarBank’s solar and battery projects are vital for North America’s clean energy shift. By emphasizing community solar and distributed energy, the company reduces fossil fuel use. This cuts carbon emissions. It also provides clean, sustainable power to many homes and businesses.
SolarBank is a key player in renewable energy in North America. Its strategic financial deals, acquisitions, and expanding project pipeline drive this progress, making it a rising star in the industry.
This report contains forward looking information regarding SolarBank, please refer to SolarBank press releases entitled “SolarBank Announces 2024 Highlights” for details of the statements, risks and assumptions associated with such forward looking information.
Final Thoughts: A Bright Outlook for Solar Investment
Investing in solar stocks is a great way to support sustainable energy. It also offers the chance for financial growth. Companies like First Solar, Enphase Energy, Daqo New Energy Corp, and Solar Bank are at the forefront of this transition.
Each company contributes uniquely to the advancement and adoption of solar technology. With the world focusing on clean energy, these companies can help achieve net-zero emissions and fight climate change.
*An exchange rate of US$1.00:Cdn$1.40 has been used.
Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: SUUN.
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