Solar electricity is a renewable energy source that is produced by converting sunlight into usable power. This conversion occurs either through thermal energy capture or by using photovoltaic (PV) technology in panels and glass. The resulting electricity is then integrated into power grids for distribution to homes, businesses, and industries. The core technologies include photovoltaic (PV) systems, which use diverse solar module types like monocrystalline and polycrystalline, and concentrated solar power (CSP). In 2023, the global solar power market was valued at $253.69 billion, with North America commanding a 41.30% share, as reported by Fortune Business Insights. This market is set to expand to $436.36 billion by 2032, growing at a 6% CAGR. The US is a key driver of this growth, with its market expected to reach $103.96 billion by 2032. Government incentives and the push for renewable energy support this.
The COVID-19 pandemic particularly presented a complex landscape for the global solar power industry. Initially, lockdowns and economic uncertainty caused a sharp decline in activity. In the US, for example, solar permit issuances plummeted by 32% in late March 2020 compared to early February, according to the Solar Energy Industries Association. However, the pandemic also accelerated the long-term trend towards renewable energy. Economic recovery and stimulus programs prioritized clean energy, which led to a surge in demand that exceeded pre-pandemic levels. The pandemic also exposed vulnerabilities in the supply chain. With ~70% of the world’s solar panels manufactured in China and an additional 10-15% produced by Chinese companies in Southeast Asia, the disruptions in Chinese manufacturing facilities during February 2020 significantly impacted global supply.
Currently, the solar power market is experiencing growth driven by technological advancements and supportive government policies. AI, the IoT, and big data are being integrated to enhance solar efficiency, which enables better forecasting and asset management. Notably, the US Department of Energy invested $750,000 in AI diagnostics for solar systems in 2021 and allocated $7.3 million in 2020 for AI-powered solar solutions. Global efforts to combat climate change are also leading to increased investments in the solar industry. The US plans to invest nearly $1 trillion in clean energy, including $5 billion in solar manufacturing, which will create 47 new manufacturing plants and power an additional 7 million homes. The US anticipates renewable energy will account for 26% of its energy share. Renewables account for ~29% of global electricity generation. By the end of 2021, the global installed capacity of solar PV reached 842.14 GW, making it the second-largest renewable electricity source after wind. To meet the Paris Agreement targets, the International Renewable Energy Agency and the International Energy Agency aim to achieve a 90% share of renewable electricity globally by 2030.
In this context, we’re here with a list of the 10 worst-performing solar stocks to buy now.
Methodology
We used the Finviz stock screener to compile a list of the worst-performing solar stocks with low 6-month performance. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
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 Worst Performing Solar Stocks to Buy Now
10. JinkoSolar Holding Co. Ltd. (NYSE:JKS)
6-Month Performance as of February 27: 31.03%
Number of Hedge Fund Holders: 13
JinkoSolar Holding Co. Ltd. (NYSE:JKS) designs, develops, produces, and markets several photovoltaic products globally. These include solar modules, wafers, cells, and energy storage systems. It offers solar system integration and EPC services, with an integrated annual capacity of 85 GW for mono wafers, 90 GW for solar cells, and 110 GW for solar modules.
The company’s primary revenue driver is its high-efficiency Tiger Neo solar module line, which uses advanced N-type TOPCon technology. This is a solar cell technology that uses a tunnel oxide layer to enhance efficiency and reduce losses. The Tiger Neo solar module line comprised ~90% of the total module shipments in Q3 2024, which was an 85% sequential increase, with over 90% penetration in China and nearly 70% in North America. The company achieved 26.2% mass-produced cell efficiency and launched the Tiger Neo 3.0 in this period.
In Q3, JinkoSolar Holding Co. Ltd. (NYSE:JKS) shipped 25.9 gigawatts of modules, which represented 92% of total shipments. Roughly 60% of these modules were shipped internationally, with strong performance in Europe, North America, and emerging markets. This module segment directly drove total revenue to $3.5 billion, which was a 2% sequential increase, despite a 23% year-over-year decrease due to falling prices. The company’s global module shipments exceed 280 gigawatts.
9. Canadian Solar Inc. (NASDAQ:CSIQ)
6-Month Performance as of February 27: -9.97%
Number of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) provides solar energy and battery storage solutions globally through its CSI Solar and Recurrent Energy segments. It manufactures solar modules, wafers, cells, and battery storage products. It also develops, constructs, and operates solar and battery storage projects, and offers EPC and O&M services.
Its e-STORAGE segment, which develops and deploys battery and energy storage solutions, achieved a record 1.8 gigawatt hours in shipments during Q3 2024. It’s expanding with new contracts in Chile and deployment of the SolBank 3.0, which is a high-density, efficient energy storage solution. This system features high-density LFP battery cells, advanced battery management, and innovative liquid cooling, offering 5 megawatt hours of capacity per 20-foot container.
e-STORAGE is a top 10 global player and holds significant market share in key regions like the US, UK, and Canada. Its strength lies in integrated solutions which use upstream manufacturing and downstream implementation. It’s investing $300+ million in a Kentucky manufacturing facility, which aims for 3 gigawatt hours annual capacity in phase one, with plans to double it later. Canadian Solar Inc. (NASDAQ:CSIQ) projects 11-13 gigawatt hours of storage shipments for 2025, with 1 gigawatt hour allocated to its own projects.
8. Sunnova Energy International Inc. (NYSE:NOVA)
6-Month Performance as of February 27: -84.08%
Number of Hedge Fund Holders: 19
Sunnova Energy International Inc. (NYSE:NOVA) provides energy as a service in the US. It offers electricity, operations and maintenance, and other services, and operates a fleet of residential solar energy systems with a generation capacity of ~2,292 megawatts for over 419,000 customers.
In the first nine months of 2024, it added 76,600 customers, with 60,000 being solar customers, emphasizing high-margin and high-credit-quality growth. The company is increasing its cash flow by maximizing a tax incentive called the Investment Tax Credit (ITC). By requiring US-made parts in new deals after September 1, 2024, it has boosted its average ITC rate to 42.2% in October, which is a 17% increase. This directly translates to more government tax credits, with each 1% increase in the ITC rate adding roughly $50 million annually to the company’s cash flow. It aims for 45% in 2025 and 2026.
It’s aggressively cutting costs and reduced O&M expenses by 48% and G&A by 5% as a percentage of revenue in FQ3 2024. Looking ahead, Sunnova Energy International Inc. (NYSE:NOVA) projects $359 million in unrestricted cash generation for 2025, and $400 million for 2026. It anticipates adding 110,000-120,000 gross customers in the full year 2024, focusing on profitability over volume.
7. Solaredge Technologies Inc. (NASDAQ:SEDG)
6-Month Performance as of February 27: -27.83%
Number of Hedge Fund Holders: 30
Solaredge Technologies Inc. (NASDAQ:SEDG) designs, develops, manufactures, and sells DC-optimized inverter systems and a suite of related products for solar photovoltaic (PV) installations globally. This includes power optimizers, inverters, batteries, storage solutions, EV chargers, smart tracking, and energy management software, along with cloud-based monitoring and design tools.
Its solar product segment features inverters, optimizers, and energy management software. In Q4 2024, this segment generated $189 million in revenue, with 60% coming from the US, 24% from Europe, and 16% from international markets. It shipped 895 megawatts, of which 63% was for commercial/utility and 37% was for residential, with an average selling price of $0.208 per watt. It’s ramping US manufacturing, with facilities in Austin and Florida producing inverters and optimizers. By focusing on domestic manufacturing, it’s aiming to capture more of the US market.
The company is focusing on regaining market share through stronger customer relationships and technological advancements. Solaredge Technologies Inc. (NASDAQ:SEDG) is prioritizing innovation, particularly in energy management software and its next-generation Nexus residential portfolio, which is expected to come out in Q4 2025. Its commercial battery product is gaining traction in Europe and international markets.
6. Shoals Technologies Group Inc. (NASDAQ:SHLS)
6-Month Performance as of February 27: -27.30%
Number of Hedge Fund Holders: 31
Shoals Technologies Group Inc. (NASDAQ:SHLS) designs, manufactures, and sells electrical balance of system (EBOS) solutions and components for solar, battery energy, and EV charging applications globally. It offers combiners, connectors, monitoring systems, and EV-specific solutions like power centers and raceways, alongside technical support and solar operations and maintenance software.
Its main business is providing electrical components for large solar projects. In Q4 2024, it made $107 million in revenue and booked $145 million in new orders, totaling $635 million in backlog. 2024 was tough due to project delays, but the company focused on improving its business. It launched new products, expanded into new markets like smaller solar projects and battery storage, and won international deals. It also consolidated factories into a new facility in Tennessee.
Shoals Technologies Group Inc. (NASDAQ:SHLS) is focused on growing in the US, expanding internationally, developing new products, and entering new markets like battery storage and data centers. It booked over $2.5 billion in potential projects in 2024 and diversified its customer base. It won $8 million in new international projects, ending with $86 million in international backlog. For Q1 2025, the company expects $70-80 million in revenue. For the full year, it expects $410-450 million.
5. Array Technologies Inc. (NASDAQ:ARRY)
6-Month Performance as of February 27: 4.10%
Number of Hedge Fund Holders: 31
Array Technologies Inc. (NASDAQ:ARRY) manufactures and sells ground-mounting tracking systems for solar energy projects. Its products include DuraTrack HZ v3, Array STI H250, Array OmniTrack, and SmarTrack software, which utilize ML to optimize solar array positioning for increased energy production. It operates through its Array Legacy Operations and STI Operations segments.
The company’s growth driver is its solar tracking solutions segment, specifically its DuraTrack and OmniTrack product lines, which are critical components for utility-scale solar projects. In Q3 2024, its revenue was $231 million. The OmniTrack tracker now represents over 20% of the company’s global orders. This tracker is an advanced solar tracking system that is designed to follow the sun’s movement across various terrains and maximise energy production. Array Technologies Inc. (NASDAQ:ARRY) anticipates double-digit growth in 2025, driven by both existing orders and strong win rates. It also holds a leading market share in Brazilian distributed generation projects.
The company is working through slow permit approvals and limited equipment availability, but it’s also benefiting from good loan terms and clear government policies. It’s focusing on new technology, like a tracker that protects panels from hail and a system that simplifies wiring, plus it has added features that automatically clear snow from panels.
4. Sunrun Inc. (NASDAQ:RUN)
6-Month Performance as of February 27: -59.70%
Number of Hedge Fund Holders: 38
Sunrun Inc. (NASDAQ:RUN) designs, develops, installs, sells, owns, and maintains residential solar energy systems across the US. It also offers battery storage, selling solar energy systems, and products. It serves residential homeowners through direct-to-consumer channels and a partner network.
In Q3 2024, it achieved record storage installations, with 60% of new customers opting for storage, which was nearly double the attachment rate from the previous year. It installed 336 megawatt-hours of storage, which was a 92% year-over-year increase, bringing the total networked storage capacity to 2.1 gigawatt-hours with 135,000 systems installed. This focus on storage is a key part of its strategy to create a “storage-first future” and enhance grid services. It’s actively involved in 16 grid service programs across the US, with over 20,000 customers participating, and has recently activated New York’s largest residential power plant.
The company is also expanding its offerings to existing customers, with a focus on battery upgrades. Nearly 87% of its existing 1 million customers do not have Sunrun Inc. (NASDAQ:RUN) storage systems, which presents a significant growth opportunity. It’s utilizing the Sunrun Inc. (NASDAQ:RUN) app to facilitate easy and low-cost upgrades.
3. Enphase Energy Inc. (NASDAQ:ENPH)
6-Month Performance as of February 27: -48.00%
Number of Hedge Fund Holders: 39
Enphase Energy Inc. (NASDAQ:ENPH) designs, develops, manufactures, and sells home energy solutions for the solar PV industry globally. It specializes in microinverter technology that converts solar energy at the module level, complemented by battery storage, energy monitoring, EV charging, and related software and services. It sells through distributors, installers, and directly to homeowners.
Its core business is microinverters and batteries for solar energy. In Q4 2024, it generated $382.7 million in revenue, shipping 2 million microinverters and 152 megawatt-hours of batteries. It prioritizes US manufacturing and shipped 1.7 million microinverters from US facilities and introduced higher domestic content products. US revenue increased 6% in Q4, driven by 11% microinverter sales growth. The company is expanding globally by introducing new products in Europe and Asia, and entering the Japanese market.
It’s also developing new technologies, like the IQ9 microinverter, and enhancing its Solargraf software. The IQ9 microinverter uses advanced technology for increased solar power output and efficiency, while Solargraf software simplifies solar system design and proposals for installers. Enphase Energy Inc. (NASDAQ:ENPH) is reducing operating expenses and aims for $75-80 million per quarter by Q2 2025. Q1 2025 revenue guidance is $340-380 million, including $50 million from safe harbor sales.
2. Nextracker Inc. (NASDAQ:NXT)
6-Month Performance as of February 27: 15.29%
Number of Hedge Fund Holders: 41
Nextracker Inc. (NASDAQ:NXT) provides solar tracker and software solutions for utility-scale and distributed generation solar projects globally. It offers tracking solutions like NX Horizon and NX Horizon-XTR, along with TrueCapture, which is a self-adjusting tracker control system, and NX Navigator, which is a monitoring and control platform.
The company’s main business is providing solar tracking systems for large solar power plants. In FQ3 2025, it made $679 million in revenue, which was a 15% year-over-year increase. The order backlog reached a record high, significantly over $4.5 billion. In FQ3, 75% of its orders came from the US. It’s seeing increased demand for its Hail Pro-75 tracker and Hail Pro software, which are designed to protect systems during severe weather, and its XTR extreme terrain-following tracker, which reduces site grading costs. Internationally, the company won contracts in 13 countries across Latin America, Europe, Australia, and the MEIA region
Nextracker Inc. (NASDAQ:NXT) has expanded R&D facilities in the US, Brazil, and India, and partnered with UC Berkeley to establish the CALNEXT Center for Solar Energy Research. It also emphasizes domestic content and now ships 100% US domestic content trackers.
1. First Solar Inc. (NASDAQ:FSLR)
6-Month Performance as of February 27: -32.12%
Number of Hedge Fund Holders: 65
First Solar Inc. (NASDAQ:FSLR) is a global solar technology company that manufactures and sells cadmium telluride thin-film photovoltaic (PV) solar modules. It offers a lower-carbon alternative to traditional silicon-based panels, and also engages in project development, operations and maintenance, and the sale of PV solar power systems to utilities.
In 2024, it secured 4.4 gigawatts of net bookings at an average selling price (ASP) of $0.305 per watt, leading to a year-end contracted backlog of 68.5 gigawatts. It achieved a record 14.1 gigawatts in module sales, which resulted in $4.2 billion in net sales and represented a 27% year-on-year increase. The company produced 15.5 gigawatts of modules, with 9.6 gigawatts being Series 6 and 5.9 gigawatts Series 7, and expanded its global nameplate manufacturing capacity to ~21 gigawatts. It’s also constructing a $1.1 billion facility in Louisiana, which is projected to increase capacity to over 25 gigawatts by 2026.
For 2025, First Solar Inc. (NASDAQ:FSLR) is navigating uncertainties like policy changes and customer delivery shifts. It faces an under-allocation issue for its Series 6 production in Malaysia and Vietnam due to customer delivery shift rights and contract terminations, and is experiencing delays in international deliveries due to the policy environment in Europe, India, and the US.
While we acknowledge the growth potential of First Solar Inc. (NASDAQ:FSLR), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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