5 Best Solar Stocks to Buy Today
Despite the elimination of many federal solar energy subsidies in President Trump’s One Big Beautiful Bill Act (OBBBA) — signed into law on July 4 — investors in the U.S. and globally still have a healthy appetite for solar energy stocks.
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Advantages of Solar Energy Stocks
Relatively Low Energy Costs
With the levelized cost of energy, or LCOE, for utility-scale solar down around $30 to $60 per megawatt-hour, solar remains one of the least expensive energy sources, even without federal subsidies. This cost advantage is bolstered by improved solar panel efficiency, falling production costs and the economies of scale big solar companies can bring to bear.
Sustained Demand
Globally, solar energy demand continues to grow, and, thanks to corporate and state environmental, social and governance (ESG) commitments and the data center boom
, U.S. demand remains resilient. China is reluctant to provide hard numbers, but Europe is targeting 750 gigawatts of solar energy production by 2030. U.S.-based technology companies like Apple Inc. (ticker: AAPL) have consistently emphasized renewable energy for their new and existing data centers. In 2024, that company reported that 72% of its data center energy comes from solar, and there’s no reason to believe Apple or other tech firms will abandon solar energy.
ESG is Alive and Well
While it’s true that the current presidential administration is not particularly hospitable to ESG investing principles, it has not been as hostile to ESG as some detractors feared. Subsequently, ESG — from the consumer, state and corporate perspective — remains a strong driver of results.
Public polling shows strong consumer support for sustainable energy, and big corporations — such as Apple and Microsoft Corp. (MSFT) — that have made commitments to becoming carbon neutral, have not backed off those goals.
State and Global Initiatives
Many international and developing markets remain committed to reducing dependence on fossil fuels. Europe’s REPowerEU plan and China’s continued dominance — with 80% of global solar manufacturing — should support global private demand worldwide.
In the U.S., state-level policies such as California and Hawaii’s 100% clean energy goals by 2045, New York’s 100% carbon-free electricity by 2040 target — as mandated in the Climate Leadership and Community Protection Act of 2019 — and Michigan’s 100% clean electricity by 2040 initiative — per MI Senate Bills 271, 273 and 502 — should further bolster solar demand for at least the next decade.
Some Solar Tax Breaks Persist
Investors should not downplay the impact of President Trump’s OBBBA on solar stocks. For starters, the bill will phase out key tax credits, such as the Clean Electricity Production Credit, the Investment Tax Credit and the Residential Clean Energy Credit. Additionally, it enhanced the Foreign Entity of Concern rules, making it harder to do business with China and other major solar manufacturers. In short, the solar industry is under some duress, and investors need to remain aware of it.
That said, there are also reasons for optimism. Solar projects that began prior to July 5 were grandfathered and remain eligible for many government benefits through December 2027. Also, energy storage projects combined with solar projects remain eligible through 2035.
Additionally, the bill provides for domestic content and bonuses for “energy communities” that are transitioning jobs from fossil fuel employment to sustainable energy employment. These bonuses encourage domestic manufacturing of solar components. This is in addition to Section 45X Manufacturing Credits for U.S. manufacturing of solar panels, which won’t be fully phased out until 2033.
Five Solar Stocks to Buy Now
The challenges mentioned above are not insurmountable for companies with good management teams that can adapt to the rapidly changing solar market environment. The five stocks on this list have emphasized cost-cutting, innovation and portfolio diversification to mitigate the loss of subsidies. They still have sound fundamentals and good global and domestic exposure, and, in the long run, they may benefit from power purchase agreements with data centers:
| Stock | Market Capitalization as of Aug. 5 close | Year-to-date Performance as of Aug. 5 close |
| Brookfield Renewable Partners LP (BEP) | $17.2 billion | 17.8% |
| Nextracker Inc. (NXT) | $8.4 billion | 53.4% |
| Array Technologies Inc. (ARRY) | $907 million | -2.2% |
| Daqo New Energy Corp. (DQ) | $1.5 billion | 10.1% |
| First Solar Inc. (FSLR) | $19.9 billion | 6.0% |
Brookfield Renewable Partners LP (BEP)
BEP is a global leader in solar, wind and hydroelectric energy. This Toronto-based company has a market capitalization of $17.2 billion and operates on five continents. BEP boasts an impressive 46,000 megawatts of installed capacity, much of that generated by the sun.
BEP provides sustainable, low-carbon energy to its clients on a long-term, inflation-linked contract basis. This innovative business model ensures stable cash flows that increase during times of heightened inflation. The company has formed a green energy partnership with Alphabet Inc. (GOOG, GOOGL) to help that mega-cap stock meet its unquenchable demand for clean energy.
As of Aug. 5, the stock is up 13.6% year to date, handily beating the S&P 500, which has appreciated 7.1% over that same period. Additionally, BEP pays a current forward annual dividend yield of 5.7%.
[READ: 7 of the Best Growth Funds to Buy and Hold]
Nextracker Inc. (NXT)
Fremont, California-based NXT is one of the most innovative solar stocks on the market. The company has a market cap of over $8.4 billion and has appreciated 51.3% year to date as of the Aug. 5 close.
NXT produces solar tracker technology solutions that optimize energy production for utility-scale generation and distribution projects around the world. The company was founded in 2013, yet in its relatively short history, it has shipped more than 100 gigawatts of solar systems to customers in 40 countries.
The company’s premier products are known as NX Horizon, NX Horizon-XTR and NX Horizon Hail Pro. NX Horizon and NX Horizon-XTR are state-of-the-art smart solar trackers designed to be installed anywhere, even in the world’s most challenging terrains. NX Horizon Hail Pro analyzes weather data in real time to protect sensitive solar systems from storm damage. All of its systems run on its TrueCapture software, which, according to company literature, uses intelligent, self-adjusting algorithms to enhance energy yields by between 2% and 6%.
Array Technologies Inc. (ARRY)
ARRY was founded in 1989 in Albuquerque, New Mexico. Since that time, the company has grown into a $907 million leader in technology-driven solar tracking solutions, doing business around the globe.
The company’s flagship product is its DuraTrack HZ v3 platform, which optimizes energy generation and distribution for utility-scale solar generation plants and commercial solar installations. As of today, it has deployed over 30 gigawatts to clients in 30 different countries.
Its DuraTrack system is designed for durability, adaptability and efficiency and is powered by its proprietary SmaTrack software, which continuously analyzes energy data and optimizes yield in real time.
The stock has struggled lately, but management is committed to forging customer partnerships, growing its international footprint and delivering value to shareholders. The equity research departments at JP Morgan and Jefferies are recommending AARY to their brokerage clients. JP Morgan has the stock rated “overweight,” while Jefferies maintains a “buy” rating on the name.
Daqo New Energy Corp. (DQ)
DQ is a Chinese solar company that engineers and manufactures high-purity polysilicon for exclusive use in the solar photovoltaic (PV) industry. Polysilicon is a critical ingredient used in solar ingots, wafers, cells and modules. DQ — the world’s lowest-cost scale producer — turns out more than 305,000 metric tons of this important material annually.
The company, which has been listed on the New York Stock Exchange since 2010, uses a unique, advanced chemical vapor deposition process in a closed-loop system to produce cost-effective, high-quality PV.
The company has a market cap of $1.5 billion, and, as of its first-quarter 2025 financial report, had $2.15 billion in cash on the books. That cash should help the company innovate and expand market share over the next several years. The stock is up 10.4% year to date as of Aug. 5.
First Solar Inc. (FSLR)
FSLR is a $20 billion producer of advanced thin-film photovoltaic solar products. The company designs and manufactures cadmium telluride solar modules that are known in the industry for being exceptionally durable and having a low environmental impact.
FSLR has manufacturing facilities in the U.S., Malaysia and Vietnam. Those plants have a combined production capacity that exceeds 16 gigawatts annually. It uses a closed-loop recycling process, which recovers about 90% of module materials.
First Solar’s seventh-generation modules deliver sustained high performance in all kinds of climates, and the company has a robust R&D pipeline. The stock is up over 184% for the five years ending Aug. 5 and has appreciated 5% year to date for the period ending on that same day. UBS and BofA both have a “buy” rating on the stock.
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5 Best Solar Stocks to Buy Today originally appeared on usnews.com
Update 08/06/25: This story was published at an earlier date and has been updated with new information.