In this article, we are going to discuss the 11 best solar energy stocks to buy according to hedge funds.
The overall energy industry has fallen by almost 8% since the beginning of the year, weighed down by the slump in crude oil prices and the prospects of a global economic slowdown. On the other hand, the clean energy sector has largely remained flat, posting YTD gains of 0.6% at the time of writing this piece.
Solar energy has emerged as a leading candidate in the current global ‘green transition’, thanks in large part to its cost, reliability, availability of supply chain, and speed of construction. Moreover, a significant increase in battery power over the last few years and reductions in battery costs have helped drive solar power’s growth by delivering firm power even during early morning and evening peak power conditions.
So it doesn’t come as a surprise that the United States installed a record-breaking 50 gigawatts (GW) of new solar capacity in 2024, the largest single year of new capacity added to the grid by any energy technology in over twenty years. Moreover, a recent report by Wood Mackenzie and the Solar Energy Industries Association revealed that solar and storage accounted for 84% of all new electric generating capacity added to the grid last year.
A significant growth opportunity for the sector has emerged in the form of the ongoing AI boom and its accompanying data centers. According to a study by the American Clean Power Association, electricity demand in the US is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification. Solar power is a primary candidate to fill this supply gap, since it can be built faster and more affordably than any other technology.
That said, the rapidly expanding sector has suffered a serious setback since the beginning of the year, primarily due to President Trump’s global trade war and his reversal of the Biden-era energy and climate policies. The current administration wants to refocus efforts on the fossil fuel sector, while conservatives push Congress to wipe out tax incentives for clean energy. As a result, over half of the nearly $30 billion in clean technology factories that were scheduled to come online this year — including manufacturing facilities for solar, wind, batteries, and electric vehicles — are now predicted to face delays or cancellations, according to a report by BloombergNEF.
Solar investors are also fretting about the increasing uncertainty amidst the global tariff war, as the majority of US solar panel imports were coming from Southeast Asian countries like Thailand, Malaysia, and Vietnam. While the President has imposed a 90-day pause on imposing reciprocal levies, it is clear that no country is safe from his tariffs. However, this troublesome geoeconomic landscape has granted a significant advantage to companies that are manufacturing domestically. However, they still must import parts, increasing their costs.
To give an example of how tariffs can impact the industry, let us remember Donald Trump’s last tenure as president, when he imposed a 30% tariff on imported solar cells and panels in 2018. This policy led the country’s renewable energy companies to cancel or freeze investments of over $2.5 billion in large-scale installation projects, resulting in thousands of lost jobs.
With that said, here are the Best Solar Energy Stocks to Buy Now.
A solar panel array, its blue sky backdrop beaming with power.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of 1,009 hedge funds and picked the top 11 companies operating in the solar energy sector with the highest number of hedge fund investors in Q4 2024. When two or more companies had the same number of hedge funds investing in them, we ranked them by their market cap as of the writing of this piece. The following are the Best Solar Energy Stocks According to Hedge Funds.
At Insider Monkey, we are obsessed with 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).
11. Canadian Solar Inc. (NASDAQ:CSIQ)
No. of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) is one of the largest solar technology and renewable energy companies in the world. Over the last 23 years, the company has successfully delivered over 125 GW of premium-quality solar photovoltaic modules to customers around the globe.
Canadian Solar Inc. (NASDAQ:CSIQ) missed forecasts in Q4 2024 as its adjusted EPS of -$1.47 fell below expectations by $1.23. The company’s revenue of $1.52 billion also missed estimates by $45.81 million, besides being down 10.62% YoY. However, CSIQ’s energy storage business witnessed rapid growth in FY 2024, with 6.6 GWh of energy storage shipments during the year, up by over a staggering 500%. 2024 also marked the largest execution year in the history of Recurrent Energy, Canadian Solar’s global product development business. RE successfully brought 1.3 gigawatts of solar projects to commercial operation across the US, Italy, Brazil, Japan, and Taiwan last year.
Canadian Solar Inc. (NASDAQ:CSIQ) expects FY 2025 revenue to range between $7.3 billion and $8.3 billion, with a focus on energy storage growth. Just last month, the company announced that it had secured $183 million in financing for its Fort Duncan storage project in Texas, which is expected to be commercially operational by this summer.
10. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
No. of Hedge Fund Holders: 13
JinkoSolar Holding Co., Ltd. (NYSE:JKS) is a leading PV module manufacturer and energy storage system integrator. The company is the first to deploy 300 GW in 160 countries globally, including more than 28 GW in the US and Canada.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) had a tough Q4 2024 as its EPS of -$1.01 fell below expectations by $0.55. The company’s revenue of $2.83 billion was also down by 38.82% YoY and fell below estimates by just over $571 million. JinkoSolar’s operations delivered net losses for the first time in the last five years in the fourth quarter. That said, the company’s annual module shipments increased by 18.3% YoY in 2024 to about 93 gigawatts, ranking first in the industry. Moreover, JKS remains cash-rich and ended the year with cash, cash equivalents, and restricted cash of $3.8 billion, up 45.4% from the end of 2023.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) continues to invest in innovation and announced earlier this year that it has achieved a significant breakthrough in the development of its N-type TOPCon-based perovskite tandem solar cell. The cell achieved a record conversion efficiency of 33.84%, marking the 27th time JKS has set a world record for efficiency and power output for PV products.
9. Daqo New Energy Corp. (NYSE:DQ)
No. of Hedge Fund Holders: 19
Daqo New Energy Corp. (NYSE:DQ) is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Based in China, the company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world’s lowest cost producers of high-purity polysilicon.
Daqo New Energy Corp. (NYSE:DQ) posted a loss of $65.3 million in Q4 2024, marking the first quarter in over a year that the company’s polysilicon production outpaced its polysilicon sales. Still, the company beat forecasts as its adjusted EPS of -$2.56 was above market expectations by $0.99. Its revenue of $195.36 million also topped estimates by $41.82 million, despite being down by over 59% YoY. Even with almost $213 million of losses in 2024, DQ maintained strong liquidity and ended 2024 with a balance of quick assets of $2.2 billion, which can be readily converted to cash if required.
Daqo New Energy Corp. (NYSE:DQ) achieved an annual polysilicon production volume of 205,068 metric tons in 2024, meeting its guidance and up 3.7% compared to 2023. The Chinese company is one of the most efficient polysilicon producers in the world, having achieved its cost advantages through innovation and disciplined management. Moreover, DQ’s robust balance sheet enables the company to strategically position itself to weather the current industry trough while its competitors struggle to stay afloat.
8. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
No. of Hedge Fund Holders: 30
SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops, manufactures, and sells direct current optimized inverter systems for solar photovoltaic installations in the United States, Germany, the Netherlands, Italy, the rest of Europe, and internationally.
SolarEdge Technologies, Inc. (NASDAQ:SEDG) had a mixed Q4 2024 as its revenue of $196.22 million beat expectations by $7 million, despite being down by almost 38% YoY. However, the company’s adjusted EPS of -$3.52 fell below estimates by $1.86. SEDG’s reported cash used in operating activities came in at $313.3 million in 2024, compared to $180.1 million used in the prior year. That said, its free cash flow deficit for the year was reported at $421.5 million.
To drive a turnaround in performance, SolarEdge Technologies, Inc. (NASDAQ:SEDG) has identified four key priorities – strengthening its financials, regaining market share, accelerating innovation, and ramping up US manufacturing. As part of its cost-cutting measures, the company reduced its workforce by approximately 400 employees worldwide. It has revealed intentions to take further steps to rationalize its cost structure by focusing on core projects, concentrating our global footprint on profitable markets, and exiting non-strategic markets and product lines. Moreover, SEDG is now manufacturing inverters, optimizers, and batteries in the US, putting it at a significant advantage in the current geoeconomic landscape.
7. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
No. of Hedge Fund Holders: 31
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of electrical balance of systems (EBOS) solutions for solar, energy storage, and eMobility. The company is a recognized leader in the renewable energy industry, whose solutions are deployed on over 20 GW of solar systems globally.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) had a mixed Q4 2024 as its adjusted EPS of $0.08 fell below estimates by $0.02. However, the company’s revenue of $107 million topped expectations by $4.92 million and finished the year at the high end of its previously guided range. Moreover, SHLS entered 2025 with approximately $635 million of backlog and awarded orders, including $440 million with deliveries right this year. The company generated $80.39 million in operating cash flow in 2024 and still has $125 million currently remaining under its share repurchase authorization.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) revealed last month that it would continue its partnership with First Solar to invest in domestic manufacturing in Alabama. The collaboration aims to strengthen the reshoring of the US solar industry supply chains, supporting the country’s push toward energy independence and sustainable growth.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) was held by 31 hedge funds in the IM database at the end of Q4 2024 with a total stake value of over $157 million, putting it among the Best Solar Energy Stocks to Invest in.
6. Array Technologies, Inc. (NASDAQ:ARRY)
No. of Hedge Fund Holders: 31
Array Technologies, Inc. (NASDAQ:ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. The company has supplied more than 20,000 trackers to residential customers and more than 2 gigawatts to commercial and utility-scale markets around the globe.
Array Technologies, Inc. (NASDAQ:ARRY) reported a revenue of $275.23 million in Q4 2024, down by 19.43% but still above market expectations by $5.87 million. However, the company’s adjusted EPS of $0.16 fell slightly below estimates by $0.01. Despite the drop in revenue, Array finished 2024 with an orderbook of $2 billion, up 10% YoY. Moreover, it generated $135 million of free cash flow in FY 2024, ending the year with a strong cash balance of $364 million.
Array Technologies, Inc. (NASDAQ:ARRY) is on track to provide 100% of its domestic content trackers in the first half of 2025, making it eligible for domestic content benefits, especially in the current geoeconomic landscape. The strategic move will be made possible with the commissioning of the company’s manufacturing facility in New Mexico, at which it began construction in April 2024.
5. Clearway Energy, Inc. (NYSE:CWEN)
No. of Hedge Fund Holders: 32
Next on our list of the Best Solar Energy Stocks is Clearway Energy, Inc. (NYSE:CWEN), a leading integrated clean energy company with the 5th largest renewable operating fleet in the US. The company’s portfolio comprises approximately 11.8 GW of gross capacity in 26 states, including approximately 9 GW of wind, solar, and battery energy storage systems.
Clearway Energy, Inc. (NYSE:CWEN) had a tough Q4 2024 as its revenue of $256 million fell below estimates by $43.73 million, despite a slight uptick from the year before. The company’s adjusted EPS of $0.03 also missed expectations by $0.3. That said, CWEN continues to expand and is committed to approximately $450 million of new long-term corporate capital investments in 2024, while bringing online over 1 GW of renewable power generation and energy storage capacity. The company reported Cash Available for Distribution (CAFD) of $425 million at the end of FY, exceeding its guidance of $395 million. Moreover, Clearway remains committed to its shareholders, raising its dividend by 1.7% to $0.424 and with expectations to annually increase its dividend by 5% to 8% in the coming years.
It was revealed this month that Clearway Energy, Inc. (NYSE:CWEN) has struck an equity deal with AIP Management for a 300MWac solar PV and 200MW/400MWh battery energy storage system (BESS) project in Texas. AIP will acquire a 49.99% equity stake in the project from Clearway with a total investment of approximately $200 million.
4. Sunrun Inc. (NASDAQ:RUN)
No. of Hedge Fund Holders: 38
Sunrun Inc. (NASDAQ:RUN) is America’s leading provider of clean energy as a subscription service, offering residential solar and energy storage with no upfront costs.
Sunrun Inc. (NASDAQ:RUN) had a mixed Q4 2024 as its revenue of $518.5 million missed market expectations by $22.56 million. However, the company’s adjusted EPS of $1.41 topped estimates by a significant $1.6. Moreover, Sunrun hit all-time highs for storage attachment rates and capacity installed, and its installed solar energy capacity stood at 242.4 MW in Q4, a 7% increase compared to the fourth quarter of 2023. Sunrun also generated $34 million in cash during the quarter (its third consecutive quarter of positive cash generation) and paid down $132 million of recourse debt with excess cash.
Sunrun Inc. (NASDAQ:RUN) expanded its customer base by 12% in Q4 and also recently announced that it is the first and only storage-plus-solar company to surpass 1 million customers, firmly establishing its position as the largest developer of residential clean energy systems in the US. The company has expanded its share of residential storage installations to over 50% in the US, while residential solar installations nationwide picked up significantly in the last few quarters, from 13% in Q1 2024 to 19% in Q4.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
No. of Hedge Fund Holders: 39
Enphase Energy, Inc. (NASDAQ:ENPH) is a global energy technology company and the world’s leading supplier of micro inverter-based solar and battery systems. The company has shipped approximately 80 million microinverters, and approximately 4.7 million Enphase-based systems have been deployed in more than 160 countries around the world.
Enphase Energy, Inc. (NASDAQ:ENPH) posted strong financial results in Q4, reporting an adjusted EPS of $0.94 and beating analysts’ estimates by $0.19. The company’s revenue of $382.71 million also grew by 26.5% YoY and topped expectations by $5.21 million. The results reflected an improved performance in the American market, though challenges remained in Europe, where revenue decreased by 25% QoQ. Moreover, ENPH generated free cash flow of just over $480 million in FY 2024 and ended the year with cash, cash equivalents, restricted cash, and marketable securities of $1.72 billion. The energy technology company remains committed to its shareholders and repurchased approximately $199.7 million worth of its shares in the fourth quarter, with a remaining $398 million authorized for further share repurchases.
Enphase Energy, Inc. (NASDAQ:ENPH) was held by 8 billionaire investors in the Insider Monkey database at the end of Q4 2024, putting it among the 10 Best Clean Energy Stocks to Buy According to Billionaires.
2. Nextracker Inc. (NASDAQ:NXT)
No. of Hedge Fund Holders: 41
Nextracker Inc. (NASDAQ:NXT) provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally.
Nextracker Inc. (NASDAQ:NXT) outperformed forecasts in Q3 2025 as its revenue of $679 million beat estimates by $32.66 million. The company’s adjusted EPS of $1.03 also topped expectations by $0.44. Moreover, NXT’s backlog hit a new record during the quarter, increasing to over $4.5 billion, supported by robust demand in all key regions with meaningful contributions from new products. The company also maintains a robust balance sheet, with $418 million of operating cash flow in the first nine months of FY 2025, ending Q3 with over $693 million in cash and equivalents.
Notably, Nextracker Inc. (NASDAQ:NXT) is now shipping 100% US domestic content solar trackers, putting it at a significant advantage in the current geoeconomic landscape. The company also remains focused on globalization and has expanded its manufacturing and supply chain network to over 70 manufacturing partners across 19 countries, enabling local content with superior on-time delivery and customer satisfaction. Moreover, Nextracker continues to enhance its innovation capabilities and recently partnered with UC Berkeley to establish the CALNEXT Center for Solar Energy Research with a $6.5 million commitment to advance solar power plant technology and develop future engineering leaders.
1. First Solar, Inc. (NASDAQ:FSLR)
No. of Hedge Fund Holders: 65
Topping our list of the Best Solar Energy Stocks is First Solar, Inc. (NASDAQ:FSLR), a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules. FSLR is unique among the ten largest solar manufacturers in the world for being the only US-based company and not manufacturing in China.
First Solar, Inc. (NASDAQ:FSLR) posted strong sales in Q4 2024 as its revenue of $1.51 billion was up 30.68% YoY and beat estimates by $33.54 million. The increase was primarily a result of increased module sales. The company’s Q4 EPS of $3.65 fell below expectations by $1.08 due to potential challenges in cost management and unforeseen expenses. That said, FSLR’s overall net income for the full-year 2024 still surged by a hefty 55.5% YoY. First Solar ended the year with a solid net-cash balance of $1.2 billion, but due to the company’s capital-intensive expansion plans, the projected net cash balance for 2025 is between $0.7 billion and $1.2 billion.
First Solar, Inc. (NASDAQ:FSLR) remains focused on expansion, expecting to grow its global nameplate manufacturing capacity to over 25 gigawatts by 2026. The company’s competitive advantage stems from its domestic footprint, technological differentiation, and insulation from Chinese supply dominance. Therefore, First Solar is currently constructing a $1.1 billion manufacturing facility in Louisiana, which is set to begin commercial operations in the second half of this year. Moreover, a new R&D center in Ohio has also been launched to drive innovation and strengthen the solar technology company’s leadership.
Overall, First Solar, Inc. (NASDAQ:FSLR) ranks first on our list of the best solar energy stocks to buy according to hedge funds. While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
