Solar energy now accounts for 4.5% of total global generation, and 11.5% of the renewable energy production mix. Whilst solar is still behind hydroelectric (57.7%), and wind ( 21.4%), in the renewable mix, there is a spiking demand.
The pressure to become more environmentally responsible is a clear mandate for companies and investors to change the way that they operate, and this makes solar energy companies ideal stock picks for portfolios that have some ethical exposure.
Political consensus has swung towards solar power being seen as a fundamental part of future energy production. As growth continues, it is estimated that by 2030, the global solar industry is projected to be worth $460.5bn, more than doubling in 8 years. Growth industries provide growth opportunities.
YOUR CAPITAL IS AT RISK
Recent political tensions between Ukraine and Russia and skyrocketing oil and gas prices mean that the shift to solar is as much about being able to keep the lights on as it is saving the planet. The alignment of long-running eco campaigns and short-term political realities makes now the time to locate and invest in the best solar energy stocks.
Solar Stocks – Top Energy & Power Names
Rule number one of successful investing is to identify a trend and trade with it, which is why the below list of top solar energy stocks includes some of the most sought-after stocks in the market.
First Solar, Inc. (FSLR)
Source: 123rf.com
First Solar, Inc. is one of the most well-established firms in the solar energy sector. The firm was established in 1990 and through its history has embarked on aggressive expansion plans, which have resulted in it having operations across the globe.
It is well positioned to use its scale to tap into increased interest in solar, and the multi-year deal with BP subsidiary Lightsource BP to provide up to 5.4 gigawatts of solar modules highlights how the firm is operating at the top end of the industry.
Recent cost-cutting exercises have significantly improved the firm’s balance sheet and resulted in the firm sitting on extensive cash reserves that could be used to fuel further expansion or returned to investors in the form of dividends.
Nextpower Inc. (NXT)
Nextpower (NASDAQ: NXT) is the California-based company formerly known as Nextracker, which changed its name in November 2025. It makes solar trackers, the motorised mounting systems that tilt panels to follow the sun through the day, for utility-scale solar plants.
The new name reflects a wider product range, which now includes power conversion equipment that prepares the electricity from the panels for the grid. In the quarter to June, reported on the 30th of July, revenue rose 8% to $935m and backlog stood above $5.5bn. The company raised its full-year revenue outlook to between $4.1bn and $4.4bn.
The stock is volatile, with a beta of 1.94 against a market beta of 1, and it trades well below its 52-week high of $163.13.
Shoals Technologies Group, Inc. (SHLS)
Source: 123rf.com
Tennessee-based Shoals Technologies Group, Inc. offers a slightly leftfield approach to providing carbon-free energy. The firm specialises in solar generation and storage but also has interests in eMobility and EV products.
Pitching itself as a “collection of engineers and solar evangelists, curious minds and collaborators, optimists and advocates of sunnier days” (source: Shoals), the firm specialises in electrical balance of systems (EBOS) technology.
This part of the industry involves the cable assemblies, inline fuses, combiners, disconnects, wireless monitoring systems and junction boxes that carry electric current from solar panels to an inverter and then on to the power grid.
Enlight Renewable Energy Ltd. (ENLT)
Enlight Renewable Energy (NASDAQ: ENLT) is an Israel-based company that develops, finances, builds and operates utility-scale solar, wind and energy storage projects. It is listed on both NASDAQ and the Tel Aviv Stock Exchange, and much of its development pipeline is now in the United States.
Second-quarter results, published on the 4th of August, showed revenues and income up 55% and adjusted EBITDA up 67% on a year earlier. Enlight raised its 2026 guidance for revenues and income to between $790m and $820m. In the quarter it reached financial close on the CO Bar Complex in Arizona, a project combining 1,211 MW of solar with 4,000 MWh of storage, and signed a 15-year power purchase agreement with Google for 200 MW of solar capacity in Oklahoma.
The shares trade on a high multiple of earnings, which means expectations are already demanding.
NextEra Energy, Inc. (NEE)
NextEra Energy (NYSE: NEE) is the Florida-based owner of Florida Power & Light, a regulated electricity utility serving about 6 million customer accounts, and NextEra Energy Resources, a large developer of wind, solar and battery storage projects across the United States.
Solar is only part of the picture. The group also generates power from nuclear and natural gas, so it is a diversified utility with a large renewables arm rather than a pure solar play. Second-quarter results, published on the 24th of July, showed revenue of $7.53bn, up 12%, and adjusted earnings of $1.15 per share. NextEra continues to expect full-year adjusted earnings of $3.92 to $4.02 per share.
It also pays a dividend, with a forward annual rate of $2.49 per share.
Clearway Energy, Inc. (CWEN)
Clearway Energy (NYSE: CWEN) owns and operates clean energy assets across the United States. Its portfolio includes 10.1 GW of wind, solar and battery storage capacity, plus 2.8 GW of dispatchable, combustion-based plants that provide grid reliability, so it is not a pure solar business.
Second-quarter results, published on the 5th of August, showed net income of $30m, adjusted EBITDA of $409m, up from $343m a year earlier, and cash available for distribution of $167m, up from $152m. Solar generation rose 28% to 3,585 GWh.
In the same release Clearway lowered its 2026 financial guidance, citing factors set out in a mid-July operational update, while keeping its target for 2030 cash available for distribution of $2.90 to $3.10 per share. The stock pays a dividend, with a forward annual rate of $1.86 per share.
The Solar Energy Stocks Sector
The solar energy stocks sector has been building momentum for decades. More importantly, the technology behind extracting power from the sun and turning it into electricity has become more efficient. The net result is that the industry is now at a tipping point, which investors need to be aware of.
In 1995, thin film, crystalline silicon and concentrator methods of photovoltaic (PV) energy production had respective efficiency rates of approximately 5%, 11% and 14%. By 2020, the numbers for each group had risen to 12%, 16% and 25%.
Over the same time period, the capital cost for each of the PV systems dropped. From 1995 to 2000, the US dollar cost per watt of electricity dropped from approximately $7.5 to $1 for thin film and concentrator methods and $6.5 to $2 for crystalline silicon.
Using fundamental analysis can help identify how these trends will feed through into growth prospects of the different firms, and technical analysis can help identify the best time to step in and buy them. Two other questions for long-term investors to consider are the extent to which government subsidies are supporting the sector, and whether that support might be scaled back at some point – and which of the firms looks best positioned to become the dominant market leader as the industry matures.
Solar has already established its position as one of the key players in the move away from carbon-based energy, and the spike in solar stock prices in 2021 signalled the potential that the sector holds for investors. The pullback in prices from the 2021 highs is being seen by many as a chance to enter into positions. Whether investors are looking to take positions in companies associated with cutting-edge technology or more sedate stocks, the process of choosing a broker must prioritise safety of funds.
Online broker platforms have improved their all-round offering and now combine easy-to-use functionality with impressive regulatory stamps of approval. Setting up an account with one can be done using desktop or handheld devices, meaning that it can take a matter of minutes to open and fund an account and put trades on.
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FAQs
Solar energy firms have been operating for decades, but the sector as a whole is still developing. This means that investments in solar energy stock have to be considered a relatively high risk-return proposition. Stock selection will come down to individual risk appetites, but using the above list of names is a great place to start.
More and more solar energy stocks are being offered by online brokers. Signing up with a broker is easy to do, but it is always worth checking if they are regulated and how extensive the range of markets they offer is. Once set up, buying solar stocks is as easy as using the tickers relating to the above stocks to locate the market and clicking a button or tapping a screen.
Investing in any stock comes with a degree of risk. The spike in prices in 2021 gives an indication of what is possible for solar stocks, but the subsequent crash also needs to be factored in. Those prioritising financial gain over ethical motives need to appreciate that timing their entry point into the market is crucial.