10 Best Alternative Energy Stocks To Buy According to Hedge Funds

4. First Solar, Inc. (NASDAQ:FSLR)  

Number of Hedge Fund Holders: 66  

First Solar, Inc. (NASDAQ:FSLR) is among the largest solar companies in the United States, specializing in the supply of thin-film photovoltaic (PV) solar panels for large-scale solar power plants. The company also has production lines in Malaysia, India, and Vietnam.

On September 26, First Solar, Inc. (NASDAQ:FSLR) inaugurated its new $1.1 billion fully vertically integrated thin-film solar manufacturing facility in Lawrence County, Alabama. This state-of-the-art facility adds 3.5 gigawatts (GW) of fully vertically integrated nameplate solar manufacturing capacity in the United States. This expansion will enable the company to increase its production capacity and meet the growing demand for its solar panels. First Solar, Inc.’s (NASDAQ:FSLR) planned 3.5 GW Louisiana plant is also on target for the second half of 2025, further solidifying its position as a leading manufacturer of solar panels.

First Solar, Inc. (NASDAQ:FSLR) is also well-positioned to benefit from the Inflation Reduction Act (IRA), which provides tax credits for solar energy production. The solar industry is expected to continue growing, driven by increasing demand for alternative energy and decreasing costs.

First Solar, Inc.’s (NASDAQ:FSLR) impressive backlog of 73.3 GW, with orders extending through 2030, is a significant indicator of the company’s growth security. The company’s production capacity expansion plans are another reason to be optimistic about its future prospects. With the Alabama factory now operational and the Louisiana factory on schedule to start production in late 2025, First Solar, Inc. (NASDAQ:FSLR) is well on its way to achieving its goal of 14 GW in U.S. capacity and 25 GW globally by 2026. This increased capacity, combined with a likely lower interest rate environment and stabilized global average selling prices for solar panels, sets the stage for substantial demand tailwinds that the company is well-positioned to capitalize on.