Friday Dec 09, 2022

The Three Best Solar Stocks In 2022 – Investment U


Solar energy was already on track to become a major growth industry over the coming decade. This really started once President Joe Biden took office. Biden immediately established a goal for the U.S. to generate 100% carbon-free electricity by 2035. He has also extended hefty tax credits and subsidies to accelerate the country’s transition to renewable energy sources. Since then, the average cost of gas has risen to over $5 per gallon. This will likely add to the country’s urgency to speed up the transition. With that said, let’s dive into the three best solar stocks to buy in 2022.

Best Solar Stocks to Buy Now

No. 3 Enphase Energy (Nasdaq: ENPH)

Enphase Energy is an energy technology company that focuses on solar generation, home energy storage and web-based monitoring and control. This is one of the top solar stocks to buy in 2022 mainly because of its stellar performance in 2021.

In FY 2022, Enphase Energy reported annual revenue of $1.38 billion and a net income of $333.7 million. These numbers were up 78% and 109% respectively. This performance marked a record year of profitability for Enphase Energy. It has carried this momentum into 2022 so far. In Q1, it reported revenue of $441 million and a net income of $51.8 million. These numbers were up 46% and 86% respectively.

To date, Enphase Energy has sold over 2 million systems in 135 countries.

No. 2 First Solar (Nasdaq: FSLR)

First Solar is one of the best solar stocks to buy due to a newly-uncovered competitive advantage.

Over the past year, COVID-19 ravaged the world’s supply chains. This, along with record inflation, is leading to massive price increases for raw materials such as aluminum and lithium. Many companies rely on these raw materials to build their products. For them, these price increases are a massive hurdle to overcome. First Solar, on the other hand, uses cadmium telluride to produce its panels. It’s one of the few companies to use this resource.

Using cadmium telluride was already a competitive advantage for First Solar. This is because First Solar’s cadmium telluride panels are much easier to manufacture. First Solar can produce CdTe panels can in a matter of hours while also using just 2% of the semiconductor materials used in traditional panels. This means that it does not rely on raw materials like aluminum and polysilicon.

This unique product is actually not anything new. First Solar has been developing it for 20+ years. But, it’s the economic timing that is finally turning First Solar’s use of CdTe into a massive advantage. Other companies will have to deal with rising material costs while First Solar can leverage a material that has a much lower demand.

The Best Solar Stocks No. 1 Tesla (Nasdaq: TSLA)

Most investors tend to focus on Tesla’s vehicles. Each quarter, the main discussion is related to how many EVs Tesla produced and delivered. This intense focus makes it easy to forget that Tesla actually has other product lines. Tesla isn’t just a top EV stock. It’s also one of the best solar stocks out there. Right now, Tesla sells two solar products: solar roofs and solar panels.

Tesla’s solar roof is like one gigantic solar panel. Instead of mounting heavy solar panels on your roof, Tesla will just replace the entire roof with one, durable sheet of solar tiles. Tesla has installed 400,000 solar roofs so far. This is the equivalent of 10 million traditional solar panels, which Tesla also sells. In …….


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