How to Invest in Solar Energy Stocks
With sky high oil and gas prices and the effects of climate change becoming increasingly apparent, the need to accelerate the transition to renewable energy sources has never been clearer. In this article, we highlight 2 top solar stocks to watch, explain how to invest in solar energy stocks and much more!
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Investing in Solar Energy
After accounting for very little of global electricity supply a decade ago, wind and solar energy capability has increased in recent years, accounting for a combined 10% of global electricity generation in 2021.
This percentage is forecast to increase throughout the remainder of the current decade, as the world transitions away from harmful fossil fuels and towards cleaner renewable energy sources.
This won’t be a quick transition, and it won’t be cheap either, but in order to achieve net zero by 2050, it does need to happen. Therefore, for those looking for a long-term investment opportunity, solar stocks could be just what you’re looking for.
However, as the last couple of years have demonstrated, investors who buy shares in solar energy stocks should be prepared for volatility along the way.
Best Solar Stocks to Watch in 2024
As solar energy output has increased in recent years, so too has the number of companies operating in this revolutionary industry, so which are the best solar stocks to buy now?
When looking for the best solar energy stocks to buy, it is important to bear in mind that what stock is the “best” is subjective and will depend largely on your investing style and goals.
In the following sections, we will take a look at 2 top solar stocks to consider adding to your portfolio for 2024 and beyond.
First Solar Inc.
First up is First Solar Inc, which is likely to have a place on most peoples’ lists of solar energy stocks to buy.
First Solar is a US-based company which manufactures solar panels and provides utility-scale photovoltaic power plants. Founded in 1999, it is a leader in the industry and one of the top-performing solar stocks in the world, consistently recording solid results.
One thing which differentiates First Solar from many of its competitors is their technology. First Solar uses highly efficient thin-film modules for its solar panels, which perform better in unideal weather conditions than more traditional technology.
Another thing setting them apart from other solar stocks is their exceptional balance sheet. As of 30 June 2022, First Solar had more than $1.7 billion in cash on the books. This extensive balance of cash provides First Solar with a certain amount of flexibility and could be used in the future to fuel further growth or returned to investors through dividends.
As we can see from the price chart above, the First Solar share price has been fairly volatile over the last five years. It has enjoyed remarkable success in recent weeks following better-than-expected second quarter results and the new US climate change bill, which should benefit solar stocks in the future.
SolarEdge Technologies
Unlike our previous solar energy stock, SolarEdge Technologies does not manufacture solar panels. Instead it develops and sells solar inverters – which convert the energy captured from the sun into usable electricity.
Its low cost technology has allowed it to wrestle market share from competitors in recent years to become a leader in this industry and, furthermore, SolarEdge has expanded into other related segments such as battery energy storage.
The market for solar inverters is forecast to grow as demand for solar energy increases over the rest of the decade and SolarEdge finds itself well-positioned to benefit from this growth.
SolarEdge has enjoyed considerable success in the stock market since its Initial Public Offering (IPO) in 2015, gaining more than 1,000% over the last five years. However, share price has been stuck in a sideways range for the last couple of years and, considering its electric growth, it may be viewed as too expensive by some investors.
How to Invest in Solar Energy Stocks
So, how can you buy solar stocks? For those interested in investing in solar energy companies, with an Invest.MT5 account from Admirals, the process is straightforward! Follow these steps to learn how to buy solar stocks:
- Open an Invest.MT5 account with Admirals and log in to the Dashboard
- Find your account in the Dashboard and click ‘Invest’ to open the MetaTrader Web Trading Platform
- Search for a solar energy stock in the Market Watch on the left of the screen and add one to the list of symbols
- Click and drag the symbol for the solar stock you want to invest in on to the chart window
- Click the New Order button at the top of the screen, enter the number of solar energy shares you want to buy and send the order to the market to invest in solar energy stocks!
Why Invest in Solar Energy Stocks with Admirals?
With an Invest.MT5 account from Admirals, you can buy shares in both the solar energy stocks highlighted in this article, over 4,300 other stocks and more than 300 Exchange-Traded Funds (ETFs)!
Other benefits of investing in solar energy stocks with Admirals include:
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