Solar energy stocks had a big run when they first became popular. Then, some issues came up about price and reliability. But, since then, it seems they’ve had some time to settle into people’s minds. And, they’ve nestled into their own unique niches, too.

Used for those who lack access to electricity, these stocks offer a useful solution. They’re also used by some energy companies as a cheaper way to generate power for their customers. Even some large buildings utilize solar.

Homes, buildings and garages all around the world can use the power of the sun. And when the sun isn’t out, a battery is able to store and provide power for rainy days.

Solar energy panels are not practical for everyone. They are still expensive to install. And, not everyone can afford the battery or backup generator that gives power when the sun isn’t out. But, the natural progression of innovation is slowly eating away at these problems.

And according to the U.S. Energy Information Administration’s 2022 Outlook, oil and gas will stay at the top. They will continue to be the most-consumed energy sources. Even in 2050. But, renewable energy will be the fastest growing energy industry.

That leaves plenty of opportunity. Especially for investors who believe in the potential for solar energy stocks. Below, I’ve picked out some of the best solar energy stocks you can find. And most of them are larger companies with some history of success. So, although these are still speculative, they are not penny stocks. That element of risk is taken away.

But, like I said, these are in a speculative industry. So, it is wise to use caution. And research each individual stock you are interested in buying. It will pay off.

Best Solar Energy Stocks

• First Solar, Inc. (Nasdaq: FSLR)
• Sunrun, Inc. (Nasdaq: RUN)
• Sunlight Financial Holdings Inc. (NYSE: SUNL)
• SolarEdge Technologies Inc. (Nasdaq: SEDG)
• Canadian Solar Inc. (Nasdaq: CSIQ)

Solar Energy Stocks to Buy

No. 5 First Solar, Inc.

First Solar has a nice big market cap of over $8 billion. This solar energy stock has had a wavy life. Recently, it’s been picking up, though. Leadership obviously has some success in their respective fields, which is great.

The company has a strong mission. And that mission is to produce clean solar energy that’s sustainable, and reliable. And the team does their best to allow their solar energy to be competitive to the cost of fossil fuels. Because they invest tons of capital and time into developing better solar tech, this is possible.

No. 4 Sunrun, Inc.

This solar energy stock’s headquarters is in California. And it’s a provider of batteries and solar panels for homes. With a market cap of almost $7 billion, it’s obvious the company understands its market. And the stock has had some huge bulls, too.

March 2020 to January 2021 saw a rise of over 1,000%. Since then, it has been dropping. And, like always, this presents an amazing buy opportunity for investors. Sunrun is a bit different than other solar companies. It offers a program that allows users to know if they are “solar qualified.” In other words, it’s a marketing angle. And it positions solar as high-class. Plus, it matches the customer with the correct type of solar plan.

No. 3 Sunlight Financial Holdings Inc.

This solar energy stock holds a market cap of almost $700 million. So, it is a medium cap business with the potential to become a large cap. And it just recently listed on the public exchange. So, it’s gone through the small bear that most recent stocks go through when they first list. And that makes it a great time to buy. It sagged, and now it’s showing signs of life.

Sunlight Financial’s unique edge is likely what is giving it such immense growth. You see, they don’t offer solar panels or installation. They offer financing to fund home upgrades. And, usually for Sunlight Financial, those home upgrades are solar panels and systems. And this edge over the competition gives the company long-lasting revenue streams.

Often, long-lasting revenue that’s paid out over time is much better. It makes the business comfortable. And it secures the future of the company.

No. 2 SolarEdge Technologies Inc.

This is another solar energy stock that’s done incredibly well since before COVID-19. And it keeps on correcting, hitting new all-time highs, then correcting again. And its market cap is huge, sitting above $17 billion. SolarEdge, like Sunlight Financial, has differentiation in the market. The company primarily provides inverters and monitoring systems for solar energy systems.

So, SolarEdge creates the small items needed to maximize the energy output. The company is based in Israel, and founded in 2006. Income, revenue and profit are all doing very well. If you’re interested in this stock, it may be better to wait. Because price is not at its highest. But, it’s headed up. And there may be a better price opportunity soon.

Solar Energy Stocks No. 1 Canadian Solar Inc.

Canada’s stock exchange is home to some of the world’s best energy companies. And apparently, that includes solar energy stocks. There are plenty of solar opportunities in Canada. Places that are not easily accessible are great opportunities for solar. And, there are plenty of places in the mountains and surrounding countryside too.

The stock keeps jumping higher and higher. And, with a market cap of $2 billion, it’s in a unique position. Because it is large enough to easily stand on its own. And, it’s small enough to still have potential for large growth opportunities.

This solar energy stock works on a global scale. Because it owns 20 operation plants in the Americas and Asia. Plus, it owns daughter companies in 23 countries all over the world. In addition, receiving many awards in 2012 through 2020 shows the company is doing a great job. These awards range from Bloomberg’s Top Bankable Manufacturer, To Deal of the Year Awards, to Power Finance and Risk.

Recently, the company has begun mass production on a new solar module. And this module has the capacity to produce 420 watts of power.