With the increase in popularity of solar power, there is a lot of pressure on the investment market to find a suitable company that can supply these technologies to a growing number of consumers. For this reason, there are several solar power companies stock that have been rising in price. These include First Solar, Enphase Energy, Canadian Solar, Brookfield Renewable, and Daqo New Energy Corp.
First Solar Power Company is an American manufacturer and marketer of solar photovoltaic modules and systems. The company specializes in selling cadmium telluride (CdTe) solar modules. It is also a provider of construction, maintenance and end-of-life panel recycling services.
The company is in the process of expanding its manufacturing capabilities, including investing $200 million in a new solar panel plant in Ohio. The company also expects to add another gigawatt of capacity to its existing portfolio of 9.7 gigawatts by 2026. In addition, First Solar has plans to invest $1 billion in a new solar panel plant in Arizona by 2025.
First Solar’s most impressive feats include its use of thin film technology, which offers a more environmentally friendly alternative to the conventional crystalline silicon PV modules that dominate the market. Specifically, the company claims to recover more than ninety percent of the glass used in its products, and to save 268 million liters of water by 2021.
Another impressive tidbit is the company’s racial and gender pay equality program. While it is not yet perfect, the company did make a significant move in that direction in 2017.
It’s no secret that the solar and wind power industries are suffering from supply and trade issues. But thanks to a new federal law, the industry is set to benefit from the Inflation Reduction Act’s incentives to expand manufacturing in the United States.
Daqo New Energy Corp.
Daqo New Energy Corp (DQ) is a Chinese manufacturer of high-purity polysilicon. Although they are best known for manufacturing polysilicon, their products can also be found in the form of photovoltaic wafers and modules. They have a total nameplate capacity of around 105,000 metric tons of the stuff. This makes them one of the largest producers of the substance.
They are not the only ones. The big three in the polysilicon biz include the likes of Xinjiang Daqo, Inner Mongolia Daqo and China Meteoric Corporation. While they all have different sets of products and services, they are all well-positioned to take advantage of the current industry trends. Combined with their impressive balance sheets, they can be counted on to play a key role in the global clean energy revolution. With an eye toward becoming a vertically integrated photovoltaic product manufacturer, these companies are poised to do more than merely make solar panels.
In short, it is no small feat to manufacture the high-quality polysilicon that the company produces. That, along with the best prices on the market, means that they can be a valuable resource to photovoltaic manufacturers. For example, Xinjiang Daqo is slated to provide 27,600 MT of the shiny stuff to another solar manufacturing powerhouse. Using this material in their next-gen photovoltaic technology will no doubt yield big savings for a large number of their customers.
Array Technologies Inc is one of the leading companies in the solar industry. It is a provider of tracker systems that can be used in utility-scale solar projects. The company sells its products to utilities, engineering firms, procurement companies, and independent power producers.
Array has offices in the United States, Australia, Central America, and Europe. It also has a global supply chain. Array’s primary product is a solar tracking system that adjusts solar panels throughout the day. Array uses machine learning to determine the best position for a solar array.
Array’s management has been taking steps towards improving its financial standing. In the last four quarters, top line revenue has increased steadily. During the same time period, Array increased its gross profit margin to 15.6%. Moreover, it executed contracts totaling $1.8 billion. This indicates that the company has a strong cash position.
Array’s third-quarter earnings were also good. The company reported a net loss of $33 million, a drop from the loss of $37 million recorded during the same period last year. Nevertheless, Array was able to beat analysts’ estimates by reporting a record quarter in terms of revenue.
During the same period, Array’s EPS surpassed the consensus estimate by booking $0.19 per share. Moreover, Array affirmed its full-year forecast. Array is projected to generate revenues of $1.5 to 1.6 billion in 2022.
Array is expected to achieve a 15% YoY EPS growth until 2030. This puts the company in a better position than rivals such as Enphase and Solaria.
Canadian Solar is one of the largest manufacturers of solar photovoltaic modules in the world. It’s also a developer of utility-scale solar power projects.
The company has recently expanded its battery storage segment, which is a good thing considering the rising costs of manufacturing solar modules. Also, the company has a decent pipeline of projects for the future. In fact, it recently announced a 100 MWp project in Japan.
Boralex is a large publicly traded renewable energy player. It produces renewable energy in Canada, France and the UK. As of the third quarter of 2021, its installed capacity was up to 2.5 gigawatts.
Another multi-faceted renewable power company is TransAlta Renewables. The company operates wind, solar, and hydro facilities throughout North America. This stock is particularly attractive to income-oriented investors, because of its high forward dividend yield.
Innergex Renewable Energy is a Canadian-based renewable energy company. Located in Longueuil, Quebec, the company has interests in 84 operating facilities. They also provide services for system installation and measurement.
Algonquin Power & Utilities is another major player in the Canadian renewable energy market. The company has been active in M&A. Currently, the company has 41 energy facilities and 2.3-gigawatt gross installed capacity.
Algonquin has a long history of increasing its dividend. In the past, the company has maintained a 10-percent annual dividend growth rate.
Boralex has also done well on the dividend front, with an annual growth of 2.1% since 2018. Although the company has had a few hiccups in its operations, such as a supply chain disruption in 2021, it continues to grow its bottom line.
Enphase Energy (ENPH) is one of the leading global providers of solar microinverters. The company manufactures solar-plus-storage solutions that are designed for both the residential and commercial markets. It has also developed an integrated system of smart batteries and a cloud-based software platform.
The company’s products offer cost-effective remote maintenance and monitoring. They are designed to work with virtually any solar module. In addition, they have built-in system redundancy. This gives it a competitive edge in the market.
The company’s financial results are consistently strong. While its revenue is growing at a steady pace, its profitability ratios have also improved. These factors are expected to continue to drive the company’s growth in the coming years.
Enphase Energy’s CEO, Badri Kothandaraman, recently announced plans for four to six new production lines. With this capacity increase, the company anticipates a faster ramp-up of shipments. He said the company believes that the domestic market has a promising future.
The company also intends to introduce new products in the near future. This is expected to expand the serviceable addressable market. By 2022, Enphase expects to have a total of $12.5 billion in serviceable available market.
Another key factor in the company’s success is its strategic partnerships. It has partnered with Creaton, a German-based company that provides solar battery storage systems. Through this partnership, Creaton will exclusively distribute the company’s IQ batteries.
Brookfield Renewable Corporation is a global leader in renewable energy. It owns hydroelectric, wind, solar, and storage facilities across North America, Europe, South America, and Asia. Currently, it has over two thousand megawatts of operating capacity.
Brookfield Renewable has invested a lot of capital into growing its renewable energy platforms. For example, it has acquired a number of hydroelectric plants in Colombia. This is complementary to its existing portfolio. The company also sees tremendous potential for expanding its carbon capture footprint.
In fact, it has a long backlog of development projects. It has 69 GW of renewable power under development.
Investing in renewable energy stocks is a smart way to profit from the growth of the clean energy industry. But before you make a move, it is important to consider the pros and cons of each individual company.
While solar and wind energy are relatively inexpensive, it is important to note that these technologies are expensive to build and operate. Therefore, investing in these companies is not a quick or easy task. You must have a long-term view and a plan for exiting speculative trades.
Brookfield has a strong track record for margin growth. During the past five years, its margins have risen over 60%.
As a result, it has been able to generate most of its revenues from long-term contracts. This allows the company to increase its portfolio of assets, as well as maximize the value of the existing ones.