Investing in solar energy is accelerating. The industry is on track to add 10 gigawatts (GW) of new capacity each year until 2022, with an average annual growth rate of 18 to 20 GW between 2023 and 2030 thanks to reduced solar panel costs. fast and battery storage. Solar stocks can thrive in the next decade.
With the potential to increase in price, investors should consider adding some solar stocks to their portfolios. Building a small portfolio of companies focused on this area is a great way to do just that. A great place to start is to evenly invest $ 3,000 in top solar stocks like Brookfield can extend (NYSE: BEP)(NYSE: BEPC), The first sun (NASDAQ: FSLR)and NextEra Energy (NYSE: NEE).
The future uses solar energy
Brookfield Renewable is one of the leading renewable energy producers globally. It currently has 19.3 GW of capacity, 64% of which comes from hydroelectricity.
Although Brookfield’s focus is on hydroelectricity, Solar energy is becoming an increasingly important growth engine for the company ddue to the rapid reduction in costs. The company has spent the past few years building an extensive solar foundation and development project backlog. It currently has 3 GW of active solar capacity and 10 GW under development. Thanks to this progress and the rapid decrease in solar costs, the company “believes[s] It is possible that in the next 10 years, most of Brookfield Renewable’s production capacity will be solar capacity. “That outlook makes it a great choice for solar growth. More importantly, the company has a long track record in creating shareholder value, which it is expected to continue in the near future.
Earn money on solar growth
First Solar is one of the leading solar panel manufacturers, focusing on thin film technology designed for utility scale projects. The company currently has a backlog of signed contracts (12.2 GW) and potential booking opportunities (8.3 GW). That’s enough work to keep it busy for years, with a current production capacity of 5.7 GW.
The company is working to build more solar panel manufacturing capacity, which will allow the company to capture more of the industry’s growth. It has one of the best balance sheets in the industry to support this expansion, backed by $ 1.4 billion in cash. The combination of visible price increases and financial strength will allow this solar reserve to generate high returns in the coming years.
An ambitious solar power plan
NextEra Energy is one of the world’s leading solar energy producers. The company currently operates 3 gigawatts of solar energy in its energy resource segment and has adequate internal capacity electric utilities in Florida to produce more energy from the sun than oil and coal.
The company is on track to significantly expand its solar operations in both business units. It is currently expected to build 3.8 to 7.3 GW of new solar capacity in its energy resources division by 2022. Additionally, it has 700 megawatts to 1.3 gigawatts. projects of storing batteries in pipes, with most of that capacity going to solar energy. Meanwhile, they plan to install 30 million solar panels by 2030 in the main utility district in Florida.
Those solar development projects that include NextEra Energy are on the rise earnings and dividends will be above average for the next few years. Hence, it will continue to generate total profits that beat the market.
A sunny future for these solar sources
Brookfield Renewable, First Solar and NextEra Energy all have significant solar growth in the coming years. As a result, they have the potential to generate significant total profits. That visible upside potential makes this trio ideal for investors with limited funds looking to get into the fast-growing solar sector. They can build a small portfolio to buy and hold for the long term.