How to Invest in Solar Energy Stocks

Roberto Rivero
8 Min read

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!

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 2022

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 2022 and beyond.

Top Solar Stocks to Watch
First Solar Inc.
SolarEdge Technologies

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.

Depicted: Admirals MetaTrader 5First Solar Inc. Weekly Chart. Date Range: 14 February 2016 – 15 August 2022. Date Captured: 16 August 2022. Past performance is not a reliable indicator of future results.

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.

Depicted: Admirals MetaTrader 5 – SolarEdge Technologies Weekly Chart. Date Range: 14 February 2016 – 16 August 2022. Date Captured: 16 August 2022. Past performance is not a reliable indicator of future results.

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:

  1. Open an Invest.MT5 account with Admirals and log in to the Trader's Room
  2. Find your account in the Dashboard and click ‘Invest’ to open the MetaTrader Web Trading Platform
  3. Search for a solar energy stock in the Market Watch on the left of the screen and add one to the list of symbols
  4. Click and drag the symbol for the solar stock you want to invest in on to the chart window
  5. 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!
Depicted: Admirals MetaTrader WebTrader – First Solar Inc. Daily Chart – New Order. Date Range: 9 December 2021 – 16 August 2022. Date Captured: 17 August 2022. Past performance is not a reliable indicator of future results.

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:

  • ✔️ The comfort of investing with a broker which is authorised and regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Jordan Securities Commission (JSC) and other well-known financial regulators
  • ✔️ Competitive transaction commissions and no account maintenance fee
  • ✔️ Exclusive access to our Premium Analytics portal, where you will find the latest market news, sentiment and technical insight
  • ✔️ Regular market analysis and a large library of educational articles at no additional cost
  • ✔️ Opportunity to go long and short by trading stock CFDs (Contracts for Difference) with a Trade.MT5 account

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INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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  • The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
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