Five solar stocks show strong growth potential as global capacity doubles in 2025. First Solar leads with innovative thin-film technology and 63% projected upside. Enphase Energy expands into energy storage solutions. NextEra Energy offers a diversified renewable portfolio with steady dividends. Array Technologies capitalizes on tracking system demand with a $2 billion backlog. Daqo New Energy rapidly scales polysilicon production. These companies are well-positioned in the accelerating clean energy shift.
While the renewable energy sector continues to evolve, solar stocks are drawing attention from market observers looking for growth opportunities. Industry leaders are positioning themselves to capture market share as global solar capacity expands rapidly.
First Solar stands out with its specialized thin-film CdTe solar modules. The company reported a strong Q3 2024 net income of $312.9 million. Trading at $150.70, analysts believe First Solar has significant room to grow, with an average price target of $245.57, representing a potential 63% upside.
First Solar’s thin-film innovation drives impressive Q3 performance, with analysts projecting substantial growth potential ahead.
Microinverter technology leader Enphase Energy is expanding into energy storage with its IQ Battery line. The company’s expected revenue growth rate of 15-20% through 2025 has analysts setting an average price target of $76.49, with bullish predictions reaching $105.
NextEra Energy offers a diversified renewable portfolio across solar, wind, and nuclear power. The company added more than 12 GW of renewable capacity in 2024 alone. NextEra expects an 8% annual growth rate through 2027 and pays a $2.06 annual dividend, yielding 2.91%.
Array Technologies, which manufactures solar tracking systems, boasts a $2 billion backlog. The company recently received a Buy rating from Guggenheim with a $10 price target and is benefiting from lower steel prices. The company is well-positioned to capitalize on the 25.6% growth in solar PV capacity observed in 2022.
Polysilicon manufacturer Daqo New Energy is expanding rapidly. Its Phase 5A expansion has increased capacity to 205,000 metric tons, with Phase 5B expected to boost capacity beyond 300,000 metric tons by 2025. The industry is experiencing significant momentum with solar PV projected to drive 80% of global renewable energy expansion through 2030.
SolarBank Corporation is targeting utility-scale and commercial projects, particularly in the growing data center market. The company is leveraging Inflation Reduction Act incentives to develop projects across the U.S. The market is poised for substantial growth with U.S. solar power generation expected to increase by 75% by 2025.
Canadian Solar continues to expand its manufacturing capacity globally while diversifying into energy storage solutions. The company maintains a strong presence in emerging markets and focuses on innovations to improve solar efficiency.
