2025 Solar Panel Stock Investment Strategy: Selected Global Leading Companies

The wave of green energy continues to boost solar panel sector valuations. As the global energy transition accelerates, countries’ demand for clean energy keeps rising. Compared to other renewable energy forms, solar energy is abundant, widely distributed, and its installation costs decrease year by year, making it one of the most competitive options. This article reviews the most关注ed solar stock companies in the US and Taiwan markets and provides an in-depth assessment of their fundamentals.

Why the Solar Industry Deserves Attention

The solar sector has experienced ups and downs over the past decade. From the bubble burst caused by the 2008 financial crisis, to policy fluctuations and cost declines in the 2010s, and then to a strong rebound driven by pandemic recovery after 2020, the industry’s development trajectory reflects the complexity of the energy transition.

Entering 2024, the US solar market faces multiple challenges—residential PV demand has significantly declined, interest rates remain high, and competition from China intensifies. However, it is worth noting that utility-scale solar installations continue to grow steadily. The US Energy Information Administration (EIA) estimates that the total US photovoltaic (PV) capacity will reach 182GW by 2026, with Texas expected to add 11.6GW in 2025, ranking first nationwide.

The federal “Inflation Reduction Act” provides substantial tax credits for businesses and households, further incentivizing solar investments. Against this backdrop, selecting truly core-competitiveness solar stocks becomes crucial.

Selected Taiwanese Solar Stocks

Delta Electronics: A stable gross margin energy solutions provider

Delta Electronics’ full-year 2024 revenue is NT$421.1 billion, up 5% year-over-year. Gross margin remains high at 32.4%, net profit after tax is NT$35.2 billion, with a net profit margin of 8.4%. EPS( is NT$13.56, and ROE) reaches 16.4%. All financial indicators show stable growth.

Recently, Morgan Stanley raised Delta Electronics’ target price from NT$440 to NT$485, maintaining an “Overweight” rating, optimistic about the company’s breakthroughs in AI data center and industrial high-voltage DC(HVDC) power solutions. As global demand for high-end power supplies heats up, Delta’s growth momentum is expected to continue until 2027.

( China Sunergy: A leading player in power grid infrastructure with explosive performance

China Sunergy’s 2024 net profit after tax is NT$3.623 billion, up 128% YoY, setting a record high. EPS reaches NT$7.33, also a new high. In Q1 2025, benefiting from Taipower’s resilient grid project, revenue hit NT$6.448 billion, a new high for the same period.

FactSet survey shows that six analysts’ median target price for China Sunergy has been revised upward from NT$182.5 to NT$195.5, a 7.12% increase. The highest valuation is NT$211, and the lowest is NT$167.

) Chailease-KY: Attractive cash dividend yield

Chailease-KY’s current PE and PB are both below industry averages, with a cash dividend yield of 5.04%. Major shareholders have recently increased holdings, outperforming the market.

US Solar Stocks Entry Opportunities

First Solar: Leader in thin-film technology

First Solar, the first US solar manufacturer listed on NASDAQ, was founded in Arizona, focusing on thin-film PV technology. Its modules perform excellently in low light and high-temperature environments, with larger sizes and lower unit costs, making them the first choice for utility-scale projects.

The company benefits from IRA policy incentives, has signed long-term supply contracts with multiple US utilities, and gains from domestic manufacturing support and import component tariffs. Trefis Team analysis indicates that under a baseline scenario with 5% annual revenue growth and stable profit margins, EPS would be around $8, with a reasonable valuation range of $175–$200 based on 22-25x PE. In an optimistic scenario, if Fed rate cuts trigger large projects and residential PV demand rebounds, EPS could rise to $10 by 2026, with stock price potentially reaching $250.

Twenty-six Wall Street analysts’ average 12-month target price is $210.12, representing a 26.31% upside from the current stock price of $166.35.

Nextracker: Explosive growth in tracking system suppliers

Nextracker specializes in smart tracking systems for utility-scale solar power plants, optimizing PV panel orientation in real-time to maximize solar energy capture and efficiency. Its recent quarterly report significantly exceeded expectations, with the stock price rising 12% and maintaining high levels.

The CEO emphasized that current performance lays a foundation for continued growth this year and secures key strategic investments. Eighteen Wall Street analysts’ 12-month average target price is $63.94, a 12.33% upside from the current price of $56.92.

Enphase Energy: Innovator in micro-inverters

Enphase Energy mainly develops solar micro-inverter systems and energy storage solutions. Recently, due to US-China tariff disputes, 95% of its lithium iron phosphate batteries are sourced from China, facing short-term cost pressures. Gross margin in Q2 2025 is expected to be compressed by 200 basis points, with impacts extending to 600–800 basis points in Q3.

However, the company is actively diversifying its supply chain, and by Q2 2026, most batteries are expected to be sourced outside China. Twenty-five Wall Street analysts’ average 12-month target price is $50.82, with a 23.41% upside potential from the current price of $41.18.

Other Notable Solar Stocks

Brookfield Renewable###BEP### is known for high dividend yields and stable dividend growth; Shoals Technologies Group(SHLS) expects 8% revenue growth in 2025, with a long-term gross margin target of 40-45%; Array Technologies(ARRY) benefits from declining steel prices improving costs, with profit expected to surpass expectations in 2025; Sunrun(RUN) offers value investment potential, with sustainable cash flow performance worth monitoring.

The Historical Context and Outlook of the Solar Sector

The solar industry originated from the discovery of the photovoltaic effect in France in the 19th century, with practical applications beginning in 1954 at Bell Labs with silicon-based PV cells. The 1960s space programs drove rapid technological advances, and the 1970s energy crises spurred global demand for alternative energy sources. Entering the 21st century, especially with China’s large-scale investments and policy support, PV costs plummeted, and by 2021, solar became the cheapest power source in many regions worldwide.

Invesco Solar ETF(TAN)'s performance vividly reflects industry changes. The 2008 financial crisis caused a bubble burst; policy fluctuations and increased competition in the 2010s led to price volatility; post-2020 pandemic recovery and green stimulus policies pushed prices to a decade high; in 2024, due to sluggish residential markets and macro headwinds, TAN declined 37.62% for the year.

Although individual stocks have shown divergence (SunPower plunged about 70% and filed for bankruptcy, SolarEdge fell from $80 to below $20), leading companies like First Solar demonstrate resilience. This divergence highlights the importance for investors to select fundamentally solid, technologically advanced companies within the solar sector.

The investment opportunities and challenges for solar stocks in 2025 coexist. Policy support, installation demand, and technological progress form long-term positives, but interest rates, competition, and supply chain risks require vigilance. Precise stock selection and risk management are key to success.