8 Most Promising Solar Stocks According to Hedge Funds

6. Shoals Technologies Group, Inc. (NASDAQ:SHLS)

Number of Hedge Fund Investors: 27

Shoals Technologies Group, Inc. (NASDAQ:SHLS) provides electrical balance of system (EBOS) solutions for solar energy projects. The company’s products, including wiring, combiners, and junction boxes, streamline the installation and operation of solar power systems. Shoals Technologies Group, Inc. (NASDAQ:SHLS) primarily serves utility-scale solar developers and engineering, procurement, and construction (EPC) firms.

Recognizing the increasing demand for solar solutions in the commercial, industrial, and institutional (CC&I) sectors, Shoals Technologies Group, Inc. (NASDAQ:SHLS) is making substantial investments to seize this market opportunity. While smaller than the utility-scale solar market, the CC&I sector is growing at an appealing rate and benefits from many of the company’s existing strengths and capabilities. Shoals Technologies Group, Inc. (NASDAQ:SHLS) has formed a skilled commercial and product development team dedicated to the CC&I market and has already started shipping products to this segment. Additionally, the company has entered into a partnership with one of the largest distributors in the industry, further reinforcing its market position. By broadening its customer base and diversifying revenue streams, Shoals Technologies Group, Inc. (NASDAQ:SHLS) aims to capitalize on the expanding demand for solar solutions in the CC&I market.

Furthermore, Shoals Technologies Group, Inc. (NASDAQ:SHLS) plans to introduce new technological innovations in the solar industry. One key area of progress is the shift to 2kV electrical systems, designed to increase voltage in solar projects to 2,000 volts. This advancement is expected to greatly enhance the efficiency, sustainability, and cost-effectiveness of solar installations. The company has launched a pilot program in collaboration with GE Vernova to test this technology.