Got $3,000? Here Are 3 Solar Stocks to Buy and Hold for the Long Term
Investments in solar energy are accelerating. The sector is on track to add 10 gigawatts (GW) of new capacity per year through 2022, with that growing to an average annual pace of 18 to 20 GW from 2023 to 2030 thanks to rapidly falling costs for solar panels and
Given the upside potential, investors should strongly consider adding some solar stocks to their portfolios. Building a mini portfolio of companies focused on the sector is a great way to do that. An excellent place to start is by investing $3,000 evenly across top solar stocks like Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), First Solar (NASDAQ: FSLR), and NextEra Energy (NYSE: NEE).
A solar-powered future
Brookfield Renewable is one of the leading renewable power producers globally. It currently has 19.3 GW of capacity, 64% of which comes from hydropower.
Although Brookfield's focus has been hydropower,
Cashing in 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 an extensive backlog of signed contracts (12.2 GW) and potential booking opportunities (8.3 GW). That's enough work to keep it busy for years, given its current manufacturing capacity of 5.7 GW.
The company is working to build out additional solar panel manufacturing capacity, which will allow it to capture more of the sector's growth. It has one of the best balance sheets in the industry to support this expansion, backed by $1.4 billion in cash. That combination of visible upside and financial strength should enable this solar energy stock to generate high-powered returns in the coming years.
An ambitious solar power plan
NextEra Energy is one of the leading global solar energy producers. The company currently operates 3 GW of solar in its energy resources segment and enough capacity within its main
The company is on track to significantly expand its solar operations in both business units. It currently expects to build 3.8 to 7.3 GW of new solar energy capacity within its energy resources division by 2022. On top of that, it has 700 megawatts to 1.3 GW of battery storage projects in the pipeline, with most of that capacity tied to solar. Meanwhile, it expects to install 30 million solar panels by 2030 within its main Florida utility.
Those solar energy development projects have NextEra Energy on track to grow its
A sunny future for these solar stocks
Brookfield Renewable, First Solar, and NextEra Energy all boast significant solar-powered growth in the coming years. They thus have the potential to generate substantial total returns. That visible upside potential makes this trio ideal for investors with limited funds who want exposure to the fast-growing solar sector. They can build a mini-portfolio to buy and hold for the long haul.
10 stocks we like better than First Solar
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