5 Solar Energy Stocks To Shine In 2020
Zacks Investment Research | Jan 09, 2020 08:23PM ET
Elon Musk had pointed out 2019 as “the year of the solar roof,” but we have to wait for fourth-quarterly earnings reports to see if it really was. Overall, 2019 was a good year for solar firms as the Invesco Solar ETF (TAN) rose 63.9% compared to the S&P 500 Index’s rise of 29.8%.
Solar stocks are growing steadily as demand for solar energy among homeowners has increased. Moreover, the investment tax credit ends next year and this is likely to push American households to opt for solar power rapidly.
Residential Solar to Score High in 2020
In third-quarter 2019, American residential solar market had reached record highs. Per a report from the Solar Energy Industries Association, in Q3 of 2019 712 megawatt of photovoltaics (PV) was installed. The association now expects that total installed PV capacity to double by 2025 and installations to reach 20.1 GW in 2021.
Last October, more than 2 million people across California were affected by power outages. These preemptive power outages were consistent in California and deliberate blackouts had bothered Pacific Gas and Electric Company customers. The utility companies are still trying hard to find ways to prevent their power lines from sparking new blazes and stop wild fire disasters.
Meanwhile, the cost of grid electricity has either stayed constant or increased, and services seem to be deteriorating, with more frequent blackouts and risks of wild fires. This, if not tax benefits, has made homeowners flee to alternative energy sources, especially solar.
What’s more? Installations of solar panels are becoming more cost-effective every year. Higher demand and decline in cost will surely benefit the solar market in 2020.
Sun Shines on Manufacturers, Installers and Suppliers
With the sun shining brighter, big tech players like Tesla, Inc. (NASDAQ:TSLA) are looking forward to make the most of the new developments in the solar space. With Tesla Solar’s new solar roof tile, the company can fare well this year. In fact, to make 2020 “the year of the solar roof,” this Zacks Rank #2 (Buy) company has to work on its solar deployment, increasing it to maximum capacity possible.
From rooftop system to utility-scale power plant, solar energy is now cost-competing with fossil fuels in most parts of the country. The three main players in the solar market — manufactures, installers and suppliers — are expected to make the most in 2020.
From exclusive solar roof tile maker Tesla to exclusive rights holding manufacturers of solar panels, all are working extensively to offer out-of-the-box solutions to residential and commercial customers. The requirement hovers around high-efficiency panels along with inverters, energy storage, and monitoring platform, and manufacturers are trying to develop a cheaper and customer-friendly variant each year. Here are two manufacturers that are poised to excel this year.
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JinkoSolar Holding Co., Ltd. (NYSE:JKS) engages in design, development, production and marketing of photovoltaic products. The company offers solar modules, silicon wafers, solar cells, recovered silicon materials and silicon ingots, globally. The company’s expected earnings growth rate for the current year is 51.2% compared with the Zacks Original post
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