Solar energy has become a key driver in the global shift toward sustainable power. It plays a crucial role in reducing greenhouse gas emissions, enhancing energy security, and fostering economic growth. By harnessing solar power, nations can reduce their reliance on fossil fuels, lowering their exposure to volatile energy markets. Moreover, with its low carbon footprint, solar energy is also a key solution for fighting climate change.
According to the International Energy Agency (IEA), declining costs have led to a surge in solar photovoltaic (PV) adoption. Over the past five years, global solar capacity has tripled. Between 2024 and 2030, solar PV is projected to drive 80% of the world’s renewable energy expansion, driven by large-scale solar farms and increased rooftop installations. By the end of the decade, solar is expected to surpass wind and hydropower as the dominant renewable energy source.
Solar Market Trends and Challenges
Wood Mackenzie’s 2025 solar market report, Solar: predictions for 2025, highlights that global installed capacity reached 495 GW in 2024, marking a 14% increase from the previous year. The rising demand for electricity, fuelled by data centers and electrification trends, continues to support this expansion. However, political shifts following the 2024 elections could introduce policy uncertainties, affecting renewable energy incentives. In mature markets, the reduction of financial support, such as feed-in tariffs and capital expenditure rebates, may slow growth after years of rapid acceleration.
Despite concerns over market saturation, a shift is taking place in 2025. Overcapacity in solar module manufacturing has led top producers to limit supply, with major polysilicon manufacturers reducing production and module makers setting price floors. This suggests the market could shift back in favor of suppliers.
Looking beyond short-term fluctuations, Deloitte’s 2025 Renewable Energy Industry Outlook expresses confidence in solar’s long-term trajectory. Their research found that solar was the only major energy source to record significant capacity growth, surging 88% to 18.6 GW. By the end of 2024, solar overtook hydropower and nuclear to become the fourth-largest source of installed capacity, trailing only wind, natural gas, and coal. The US Energy Information Administration (EIA) also projects record-breaking additions in 2024, with solar capacity expected to grow by 38.4 GW, far exceeding the 6.5 GW increase expected for wind power.
In summary, solar energy has become a key part of the global shift toward cleaner power. Its fast growth is fuelled by new technology, lower costs, and supportive policies. However, future progress will depend on addressing policy uncertainties and infrastructure challenges. With ongoing innovation and strong government support, solar energy is set to remain a major player in the clean energy transition. Keeping this in mind, let’s explore our top picks for the best solar stocks to buy in 2025.
An agricultural field full of solar panels, capturing the sun’s energy for the company.
Our Methodology
To identify the stocks, we began by compiling a list of solar companies with a market capitalization of at least $500 million. This was done using online stock screeners, solar-focused ETFs, and financial media reports. Next, we filtered the list to include only those stocks with an upside potential of at least 10%. From this refined selection, we identified the top 10 stocks with the highest hedge fund ownership, leveraging data from Insider Monkey’s Q4 2024 hedge fund database. Finally, we ranked these stocks in ascending order based on the number of hedge funds holding positions in them.
Note: All pricing data is as of market close on March 20.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Solar Stocks to Buy in 2025
10. JinkoSolar Holding Co. Ltd. (NYSE:JKS)
Upside Potential: 52%
Number of Hedge Fund Holders: 13
China-based JinkoSolar Holding Co. Ltd. (NYSE:JKS) ranks among the world’s leading solar module manufacturers, supported by an expansive global supply chain and a solid foothold in both residential and utility-scale solar markets. The company specializes in producing high-efficiency monocrystalline and bifacial modules, delivering innovative solutions designed to maximize energy generation.
Analysts have maintained a cautious view of the stock, largely due to the potential effect of proposed tariffs on solar panel imports, which could climb to as much as 200%. GLJ Research analyst Gordon Johnson, who has a Sell rating on the stock, noted that such tariffs could result in structural losses, particularly for the company’s new $1 billion Saudi Arabian plant intended to serve the U.S. market. The analyst also flagged concerns around declining profitability and oversupply issues in the solar cell sector.
Shares of JinkoSolar Holding Co. Ltd. (NYSE:JKS) have dropped nearly 11% year-to-date. Despite these challenges, the company benefits from a vertically integrated solar product value chain, encompassing everything from silicon wafer production to solar module manufacturing. This integration, coupled with cost leadership and technological advancements, has cemented the company’s role as a key player in the solar industry, especially as the global transition to clean energy accelerates. The company is set to announce its fourth-quarter 2024 financial results on March 26, which will be closely monitored for insights into its future outlook.
9. Canadian Solar Inc. (NASDAQ:CSIQ)
Upside Potential: 27%
Number of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) is a fully integrated solar company that manufactures solar PV modules and develops large-scale solar and battery energy storage projects. Its diverse product offerings include high-efficiency solar panels, energy storage solutions, and engineering, procurement, and construction services.
The company anticipates substantial growth in electricity demand over the coming decades, driven by trends such as clean energy adoption in data centers, EVs, crypto mining, and rising industrial power needs. Global energy storage capacity is projected to grow at an annual rate of 32%, surpassing 1.0 Terawatt-hour (TWh) by 2027, positioning its subsidiary e-STORAGE as a key player.
To bolster its expansion, Canadian Solar Inc. (NASDAQ:CSIQ)’s subsidiary, Recurrent Energy, secured $183 million in funding for the Fort Duncan Storage project in Texas. This 200 MWh facility, set to launch by summer 2025, includes $112 million from Nord/LB and $71 million in tax equity from Greenprint Capital. Operating on a merchant basis, the project will supply stored energy to the ERCOT grid during peak demand, supporting up to 66,100 households for a two-hour cycle.