A global clean energy revolution is gaining momentum, driven by proactive government initiatives. At the heart of this transformation lies the booming solar energy market, which has witnessed remarkable growth in recent years. With continued support and visionary policies, solar power is set to soar even higher in the years ahead.

Considering this backdrop, investors could scoop up shares of fundamentally stable solar stocks, Enphase Energy, Inc. (ENPH), Emeren Group Ltd (SOL) and Array Technologies, Inc. (ARRY). These stocks are well positioned for growth in 2025.

The clean energy industry fuels hundreds of billions in economic activity while championing sustainability and environmental stability. Leading this transformative wave is solar energy, a cornerstone in the journey toward a greener, cleaner future.

The U.S. solar market is achieving new heights, with the second quarter of 2024 setting a record 9.4 GW of installed capacity, a 29% increase from the previous year, according to SEIA. Over the next five years, the industry is projected to consistently install at least 40 GW annually, driving a steady 4% average growth.

Government initiatives have played a crucial role in propelling this growth. Notably, President Biden’s Federal Sustainability Plan aims to slash U.S. greenhouse gas emissions by 50–52% from 2005 levels by 2030.

The Inflation Reduction Act further propels the solar industry forward by lowering energy costs for consumers and small businesses. With the clean energy economy and manufacturing sectors thriving, this initiative is a cornerstone in driving the solar sector’s growth and bolstering its long-term impact.

Now, considering these positive trends, let us dive deep into the fundamentals of three Solar stocks, starting with #3.

Stock #3: Enphase Energy, Inc. (ENPH)

ENPH is a global energy technology company that designs, develops, manufactures, and sells home energy solutions. Its Enphase Energy System utilizes power electronics, semiconductors, and cloud-based software technologies for integrated solar generation and storage.

On November 21, ENPH announced the availability of its new portable energy system, the IQ® PowerPack 1500, for pre-order in the United States and Canada. With new and advanced releases, ENPH is set to gain a dominant market position in the solar energy industry.

On November 13, ENPH announced a safe harbor agreement with IGS Solar, a top solar finance company, for the deployment of the company’s IQ8™ Microinverters throughout the United States.

This agreement gives ENPH the opportunity to spread its innovative products throughout the U.S. solar technology market and enhance its growth prospects.

For the fiscal 2024 third quarter that ended September 30, ENPH’s net revenues came in at $380.87 million. Its non-GAAP operating income was reported to be $101.41 million.

Additionally, the company’s non-GAAP net income and non-GAAP net income per share came in at $88.40 million and $0.65, respectively.

Analysts expect ENPH’s revenue and EPS for the fiscal fourth ending December 2024 to increase 25.9% and 40.8% year-over-year to $380.98 million and $0.76, respectively.

Shares of ENPH have surged 11.6% over the past five days and 4.3% intra-day to close the last trading session at $66.29.

ENPH’s POWR Ratings reflect its fundamentals. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

ENPH has a B grade for Growth and Quality. It is ranked #5 out of 14 stocks in the Solar industry.

In addition to the POWR Rating highlighted above, you can check ENPH’s ratings for Stability, Value, Momentum, and Sentiment here.

Stock #2: Emeren Group Ltd (SOL)

SOL is a global renewable energy company that develops, owns, and operates solar projects globally. The company provides engineering, procurement, construction and development services agreement (DSA) services, with a focus on expanding its DSA business in solar and battery energy storage systems.

On November 5, SOL announced a co-development agreement with Arpinge, a permanent capital vehicle focused on sustainable infrastructure in Italy, to jointly develop a 300 MW Battery Energy Storage System (BESS) portfolio in Southern Italy.

The partnership could strengthen SOL’s market presence in Italy and bring in new growth opportunities for the company.

On September 30, SOL announced the sale of a 57 MWp solar project portfolio to Trina Solar Systems, the French subsidiary of Trina Solar International System Business Unit. With this sale, SOL is set to earn major capital that could further facilitate the company’s future growth.

For the fiscal 2024 third quarter that ended September 30, SOL’s net revenues came in at $12.86 million. Its income from operations was reported to be $2.14 million, compared to a loss from operations of $3.96 million in the previous year’s quarter.

Moreover, the company’s net income and income per ADS attributed to SOL came in at $4.84 million and $0.09, compared to a net loss and loss per ADS $9.39 million and $0.17 in the prior year’s quarter, respectively.

For the fiscal year ending December 2025, Street expects SOL’s revenue and EPS to increase 46.4% and 260.7% year-over-year to $144.64 million and $0.34, respectively.

SOL’s shares surged 2.8% intra-day to close the last trading session at $1.87.

SOL’s fundamentals are mirrored in its POWR Ratings. It has a B grade for Growth and Momentum.

SOL is ranked #3 out of 14 stocks within the Solar industry.

Click here to access SOL’s ratings for Value, Stability, Quality, and Sentiment.

Stock #1: Array Technologies, Inc. (ARRY)

ARRY is a global provider of utility-scale solar tracker technology. It manufactures ground-mounting tracking systems for solar energy projects. The company offers Tracker Systems, DuraTrack HZ v3, Array STI H250, OmniTrack, and SmarTrack Software.

On November 18, ARRY announced a strategic $3 million investment in Swap Robotics, a pioneer in utility-scale solar robotic operations, to drive automation in photovoltaic (PV) installation technology.

This investment is in line with ARRY’s commitment to innovate and develop solar products that would aid the company in empowering its growth in global markets.

On August 7, ARRY announced the launch of SkyLink, a PV-powered wireless tracker system that builds on the capabilities of DuraTrack® and OmniTrack offerings. This new and advanced release supports the company’s plans to facilitate the adoption of sustainable energy solutions and place itself in a dominant market position.

For the fiscal third quarter that ended September 30, 2024, ARRY’s revenue was reported to be $231.41 million. Its adjusted gross profit came in at $81.95 million. Additionally, the company’s adjusted net income and adjusted net income per common share were reported to be $26.46 million and $0.17, respectively.

The consensus revenue and EPS estimates of $1.15 billion and $0.83 for the fiscal year ending December 2025 exhibit a year-over-year rise of 25.6% and 36%, respectively. Moreover, the company has surpassed consensus EPS estimates in all four trailing quarters, which is noteworthy.

Shares of ARRY have gained 1.1% over the past month and marginally over the past three months, closing the last trading session at $6.63.

ARRY’s POWR Ratings reflect its prospects. The stock has a B grade for Growth.

ARRY has topped the 14-stock Solar industry. Click here to access ARRY’s ratings for Momentum, Quality, Stability, Value, and Sentiment.

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ENPH shares were trading at $71.95 per share on Monday morning, up $5.66 (+8.54%). Year-to-date, ENPH has declined -45.55%, versus a 27.07% rise in the benchmark S&P 500 index during the same period.

About the Author: Aanchal Sugandh

Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns. More...

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