Renewable energy stocks have had a wild year, jumping early in the year as the market pushed the entire sector higher. But values fell as the euphoria wore off and companies had to start proving they were worth high valuations.
Three of our contributors highlighted the renewable energy stocks they’re thankful for and SunPower (NASDAQ:SPWR), Enphase Energy (NASDAQ:ENPH), and Lucid Group (NASDAQ:LCID) topped the list.
Finally focusing on residential solar
Travis Hoium (SunPower): The last few years have been a wild ride for SunPower. The company sold off its utility-scale solar business, spun off its solar panel manufacturing business, and is in the process of finding a buyer or other alternative for its commercial solar business. What’s left is the residential solar installation business that’s become one of the most valuable parts of the solar energy market. And you can see below that it’s treated investors very well.
I’m thankful that SunPower found a path to success on the market and can now focus on becoming a growth stock. The company has built the infrastructure to sell, design, install, and finance residential solar projects at scale, which is what the market is rewarding today. And it made a great deal in selling its inverter business to Enphase Energy for stock that ultimately saved the company.
The next few years will be important for SunPower’s long-term prospects. If it can grow in residential solar and improve profitability along the way the stock could continue to rise. But solar installation has been a competitive business and companies have risen and fallen over the last decade. What I think will separate SunPower long-term is the ability to combine high-quality solar installations with energy storage and monitoring features. As all of these energy products come together, SunPower will keep giving us new energy products to be thankful for.
An investment for the planet
Howard Smith (Enphase Energy): I first heard of Enphase Energy seven years ago, when I was investigating adding solar panels to my roof. I didn’t invest in the company, or even consider it at the time. It was just a name on the equipment controlling and monitoring the solar power coming into my home after I made the investment. Seven years later that investment in the solar panel system has about paid for itself — including tax and other incentives — and I wish I had bought Enphase stock more than 2,000% ago.
My equipment may be the company’s first-generation microinverter and related technologies, but Enphase recently released the eighth-generation microinverter system. The IQ8 is an all-in-one system that the company says is “capable of forming a microgrid during a power outage using only sunlight, providing backup power even without a battery.” While it is currently only available in North America, that will change soon as Enphase has been working to grow globally.
Enphase recently launched its battery storage system in Belgium and has also just expanded into Brazil and Italy. And the company is not just growing geographically, it is also adding to its addressable market base. Enphase just announced plans to acquire ClipperCreek, an electric vehicle (EV) charging solutions company.
Enphase plans to …….