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US Solar Electricity Generation to Beat Hydro: Stocks to Buy
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Per the latest short-term energy outlook published by the U.S. Energy Information Administration (“EIA”), annual electricity generation from solar energy in the United States will be 14% more than electricity generation from hydroelectric facilities in 2024. In addition to surpassing hydropower generation for the first time, the solar capacity increase is also projected to reduce generation from fossil fuel-fired power plants in the nation.
Such solid projections naturally bring the spotlight on solar stocks like JinkoSolar Holdings (JKS - Free Report) , Nextracker (NXT - Free Report) and Shoals Technologies Group (SHLS - Free Report) , which you may add to your portfolio.
Factors Driving Solar Growth in America
A key catalyst driving growth in the U.S. solar industry is solid installation activities. As reported by the Solar Energy Industries Association (“SEIA”), the U.S. solar industry installed 5.6 gigawatts-direct current (GWdc) of capacity in the second quarter of 2023, indicating a 20% increase from that reported in the second quarter of 2022.
Such solid solar installation activities are backed by the falling cost of installation and favorable policies undertaken by individual states as well as the U.S. government. The cost to install solar has dropped by more than 40% over the last decade, per SEIA.
Policy-wise, renewable portfolio standards (RPS) set by states across the nation play an integral role in reducing emissions and boosting the individual state’s clean energy portfolio. Moreover, in October 2023, the U.S. government announced $3.5 billion funding for 58 projects across the country to strengthen electric grid resilience, with a particular focus on spurring solar and other renewable energy.
Another factor driving customers toward solar electricity generation is the steadily increasing household electricity bill from conventional energy sources. Per EIA, in the first three months of 2023, the average U.S. residential monthly electricity bill was 5% higher year over year.
Stocks to Buy
To summarize, the prospects of solar stocks seem bright, while unfavorable weather patterns have been leading to reduced electricity generation from hydropower. This has prompted EIA to reduce its forecast of U.S. hydropower generation by 6% in 2023 compared with last year.
Considering the above discussion, we would encourage investors to invest in the following solar stocks:
JinkoSolar: It is a manufacturer of solar products like silicon wafers, solar cells and solar modules, with a global network spanning Europe, North America and Asia. In October 2023, JinkoSolar announced its third-quarter 2023 results. Its total solar module, cell and wafer shipments were 22,597 megawatts (MW) in the third quarter, up 108.2% from that recorded in the last reported quarter.
The Zacks Consensus Estimate for JinkoSolar’s 2023 sales indicates an improvement of 34.9% from the prior-year reported figure. The bottom-line estimate for the year implies an improvement of 108.6% from the 2022 reported figure. The company currently sports a Zacks Rank #1 (Strong Buy).
Nextracker: It is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants. In October 2023, Nextracker reported second-quarter fiscal 2024 results. Its quarterly revenues worth $573 million improved a solid 23% year over year.
The Zacks Consensus Estimate for NXT’s fiscal 2024 sales indicates an improvement of 23% from the prior-year reported figure. The bottom-line estimate for fiscal 2024 implies growth of 812.5% from the 2022 reported figure. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shoals Technologies: It is a leading provider of electrical balance of system (EBOS) solutions for solar energy projects in the United States. In November, Shoals reported its third-quarter results. Its revenues improved 48% year over year in the third quarter, backed by the increased domestic demand for solar EBOS.
The Zacks Consensus Estimate for SHLS’ 2023 sales indicates an improvement of 49.9% from the prior-year reported figure. The consensus estimate for 2023 earnings implies growth of 78.4% from the 2022 reported figure. The company currently carries a Zacks Rank #2.
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US Solar Electricity Generation to Beat Hydro: Stocks to Buy
Per the latest short-term energy outlook published by the U.S. Energy Information Administration (“EIA”), annual electricity generation from solar energy in the United States will be 14% more than electricity generation from hydroelectric facilities in 2024. In addition to surpassing hydropower generation for the first time, the solar capacity increase is also projected to reduce generation from fossil fuel-fired power plants in the nation.
Such solid projections naturally bring the spotlight on solar stocks like JinkoSolar Holdings (JKS - Free Report) , Nextracker (NXT - Free Report) and Shoals Technologies Group (SHLS - Free Report) , which you may add to your portfolio.
Factors Driving Solar Growth in America
A key catalyst driving growth in the U.S. solar industry is solid installation activities. As reported by the Solar Energy Industries Association (“SEIA”), the U.S. solar industry installed 5.6 gigawatts-direct current (GWdc) of capacity in the second quarter of 2023, indicating a 20% increase from that reported in the second quarter of 2022.
Such solid solar installation activities are backed by the falling cost of installation and favorable policies undertaken by individual states as well as the U.S. government. The cost to install solar has dropped by more than 40% over the last decade, per SEIA.
Policy-wise, renewable portfolio standards (RPS) set by states across the nation play an integral role in reducing emissions and boosting the individual state’s clean energy portfolio. Moreover, in October 2023, the U.S. government announced $3.5 billion funding for 58 projects across the country to strengthen electric grid resilience, with a particular focus on spurring solar and other renewable energy.
Another factor driving customers toward solar electricity generation is the steadily increasing household electricity bill from conventional energy sources. Per EIA, in the first three months of 2023, the average U.S. residential monthly electricity bill was 5% higher year over year.
Stocks to Buy
To summarize, the prospects of solar stocks seem bright, while unfavorable weather patterns have been leading to reduced electricity generation from hydropower. This has prompted EIA to reduce its forecast of U.S. hydropower generation by 6% in 2023 compared with last year.
Considering the above discussion, we would encourage investors to invest in the following solar stocks:
JinkoSolar: It is a manufacturer of solar products like silicon wafers, solar cells and solar modules, with a global network spanning Europe, North America and Asia. In October 2023, JinkoSolar announced its third-quarter 2023 results. Its total solar module, cell and wafer shipments were 22,597 megawatts (MW) in the third quarter, up 108.2% from that recorded in the last reported quarter.
The Zacks Consensus Estimate for JinkoSolar’s 2023 sales indicates an improvement of 34.9% from the prior-year reported figure. The bottom-line estimate for the year implies an improvement of 108.6% from the 2022 reported figure. The company currently sports a Zacks Rank #1 (Strong Buy).
Nextracker: It is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants. In October 2023, Nextracker reported second-quarter fiscal 2024 results. Its quarterly revenues worth $573 million improved a solid 23% year over year.
The Zacks Consensus Estimate for NXT’s fiscal 2024 sales indicates an improvement of 23% from the prior-year reported figure. The bottom-line estimate for fiscal 2024 implies growth of 812.5% from the 2022 reported figure. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shoals Technologies: It is a leading provider of electrical balance of system (EBOS) solutions for solar energy projects in the United States. In November, Shoals reported its third-quarter results. Its revenues improved 48% year over year in the third quarter, backed by the increased domestic demand for solar EBOS.
The Zacks Consensus Estimate for SHLS’ 2023 sales indicates an improvement of 49.9% from the prior-year reported figure. The consensus estimate for 2023 earnings implies growth of 78.4% from the 2022 reported figure. The company currently carries a Zacks Rank #2.