The 10 Must-Watch Solar Company Shares for Long-Term Investors

The renewable energy sector has undergone significant cycles of investor enthusiasm and disappointment, with solar companies experiencing dramatic swings in market value. While the electric vehicle industry has achieved mainstream adoption, solar energy remains positioned as a longer-term play for patient capital. For those willing to conduct thorough research and accept the inherent volatility, solar company shares present meaningful opportunities. However, the political landscape—particularly recent policy shifts—adds an additional layer of caution that investors should carefully consider when building positions in this sector.

The solar companies profiled here were selected based on market position, revenue generation, forward-looking growth indicators, and analyst consensus assessments. Proper due diligence remains essential before committing capital to any equity position.

Technology-Driven Solar Leaders

Enphase Energy Inc. (ENPH) stands out by offering integrated home energy solutions that combine solar generation and battery storage on a unified platform. The equity has experienced boom-bust cycles characteristic of growth-stage renewable companies. While its five-year cumulative return of approximately 231% substantially outpaced the S&P 500’s 88% gain over the same window, recent three-year and one-year performances have proven disappointing. Professional analyst sentiment leans toward “hold,” though conviction appears to be building among longer-term believers who view current valuations as potentially attractive entry points.

First Solar Inc. (FSLR) offers differentiation through its use of cadmium-telluride photovoltaic technology rather than polysilicon-based panels, enabling the company to sidestep supply chain vulnerabilities that impacted competitors. With domestic U.S. manufacturing capabilities and significantly reduced China-related exposure, this solar company has demonstrated superior relative performance. The equity has appreciated over 260% across five years and posted strong 2024 gains, with analyst consensus suggesting 40%+ upside from recent price levels.

SolarEdge Technologies Inc. (SEDG) addresses the industry’s most persistent challenge: energy storage and grid management. The company combines traditional solar installation services with battery storage solutions. However, recent financial deterioration—marked by significant earnings and revenue contractions in 2024—has created substantial pressure on the share price. Paradoxically, this distress has prompted insider buying, and analyst forecasts suggest potential 78%+ returns if operational turnaround efforts succeed.

Alternative Solar Company Business Models

Sunrun Inc. (RUN) dominates the residential solar installation market, particularly through its leasing model where customers utilize panels without outright purchase. The acquisition of its largest competitor, Vivint Solar, cemented Sunrun’s market leadership position. Despite this dominant market share, the equity has struggled considerably, with recent earnings disappointments weighing on sentiment. However, analyst consensus remains constructively bullish, with expectations for approximately 94% appreciation over the subsequent 12 months.

Array Technologies Inc. (ARRY) provides exposure to the hardware and tracking technology layer rather than panel manufacturing directly. Its proprietary sun-tracking systems optimize panel efficiency by maintaining optimal solar angles throughout the day. The company has endured significant underperformance, declining over 63% year-to-date, yet the analyst community maintains constructive positioning with 56% of coverage issuing positive ratings and price targets 69% above recent prices.

Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI) takes a fundamentally different approach as a real estate investment trust rather than a direct solar equipment play. The firm owns equity stakes across multiple renewable energy enterprises, offering both current income (6.10% dividend yield) and capital appreciation potential. This structure appeals to investors seeking steady cash flow alongside sector exposure.

Supply Chain and International Solar Company Exposure

Daqo New Energy Corp. (DQ), headquartered in China, operates as one of the world’s lowest-cost polysilicon producers—a critical raw material for panel manufacturing. This supply-chain-focused investment offers indirect exposure to solar industry growth. While shares have experienced material depreciation from 2021 peaks, analyst support remains predominantly positive, with valuations suggesting meaningful recovery potential.

Canadian Solar Inc. (CSIQ) manufactures solar panels for utility-scale projects and generated approximately $7.61 billion in fiscal 2023 revenues. The company provides geographic diversification and large-project exposure compared to residential-focused competitors.

JinkoSolar Holding Company Ltd. (JKS), based in China, represents the world’s largest solar company by annual revenue, exceeding $104 billion. The firm maintains U.S. manufacturing and distribution operations alongside New York Stock Exchange listing, ensuring accessibility for American investors. However, geopolitical uncertainties specific to both solar and Chinese equities create near-term headwinds.

Investment Framework and Risk-Adjusted Strategy

Solar company shares exhibit multiple layers of risk requiring careful consideration. The sector demonstrates pronounced earnings volatility, with numerous firms still operating unprofitably. Geopolitical variables—particularly those tied to election cycles and policy transitions—create regulatory uncertainty. Additionally, the field has become increasingly crowded as traditional energy firms and new entrants pursue market share in the “green energy” space.

Market participants should approach solar company share selection through a structured due diligence process, potentially incorporating guidance from qualified financial professionals. Concentration risk can be mitigated through diversified positions across multiple solar companies or through thematic mutual funds and exchange-traded funds (ETFs) that provide inherent portfolio construction benefits.

The path forward for solar company performance requires patience and conviction regarding long-term renewable energy adoption. While near-term political and market dynamics may create volatility, the fundamental thesis supporting the solar industry’s eventual maturation appears intact. Successful investors will combine rigorous company-specific analysis with appropriate risk management and realistic time horizons.

Research comprehensiveness and professional guidance remain paramount when constructing positions in solar company shares. Once clear investment objectives have been established, actual trade execution can proceed through brokers’ online platforms or with advisors’ assistance, depending on individual preferences and expertise levels.

The solar energy sector’s development trajectory suggests meaningful runway remains before mass-market adoption becomes inevitable. This extended timeline may actually benefit disciplined investors capable of identifying future winners among today’s solar company share landscape. However, near-term policy shifts and market volatility will likely persist as complicating factors throughout the investment process.