10 Best Solar Stocks to Buy in 2025

4. Sunrun Inc. (NASDAQ:RUN)

Upside Potential: 101%

Number of Hedge Fund Holders: 38

Sunrun Inc. (NASDAQ:RUN) is a residential solar energy company specializing in solar panel installations, home energy storage, and solar leasing solutions. The company’s business model engages in providing clean energy as a subscription service. It allows homeowners to access solar energy with little to no upfront cost, offering lease and power purchase agreements (PPAs) that drive widespread adoption.

Analysts have acknowledged the company’s solid performance despite a tough market environment. However, concerns persist regarding uncertainties in renewable energy policies, especially components of the Inflation Reduction Act (IRA) that could impact cash flow for residential installers. These challenges may affect the company’s performance in the near term leading to analyst concerns. For instance, Truist Securities analyst Jordan Levy recently lowered Sunrun Inc. (NASDAQ:RUN)’s price target from $12 to $9 while maintaining a Hold rating after reviewing its Q4 results.

However, on March 3, RBC Capital analyst Christopher Dendrinos reiterated a more positive stance on Sunrun. While he revised the price target for the company from $17 to $14, he maintained an Outperform rating. The analyst acknowledged the uncertainties and noted that despite a strong balance sheet offering flexibility to navigate an uncertain macro environment, reduced customer growth and cash generation outlooks are evident. However, based on the analyst’s adjusted valuation model, he suggested that in the current environment, Sunrun should be approached as a value play, focusing on its cash-generating potential.