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4 Stocks Poised to Gain on Expanding European Solar Market
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Since 2010, Europe witnessed the strongest growth for solar in 2019, with new solar photovoltaic (PV) capacities installed during the year than any other renewable energy source.
The growth of solar power energy in the European Union (EU) has outpaced many of the leading solar regions worldwide. Per a report by Solar Power Europe, 16.7 gigawatts (GW) of installations were added in the region last year, representing a solid 104% surge over the 8.2 GW added in 2018.
Interestingly, 26 of the 28 member states in the EU installed more solar in 2019 than in 2018. Thus, solar energy companies across the globe have identified the European solar energy market as highly prospective.
Key Catalysts Driving European Solar Market
The primary reason for solar power growth in the EU is the solar industry’s cost competitiveness. As the cost of solar energy equipment is at an all-time low and installation costs for solar panels are dropping significantly, demand for solar power is on the rise.
In recent times, the EU has adopted significant measures to boost solar power, making solar technologies more accessible to consumers. This is slowly getting accomplished through the clean energy for all Europeans package, which sets a 32% renewables target by 2030.
What’s Ahead for the European Solar Market?
In Europe, 20% of the electricity demand will be powered by solar energy by 2030. Per a Solar Power Europe report, installations of 28.2 GW are expected to get added in 2022 and exceed the 30 GW level in 2023.
Overall, the European solar market is anticipated to add 129.2 GW of total capacity within this period. Notably, in line with such overwhelming projections, the upcoming years are expected to witness continued growth in solar deployment in Europe.
Stocks in Focus
Let’s take a brief look at a few solar companies that have already carved out a place in the European solar market and are expected to expand footprint in the time to come. Considering the market’s growth prospects, these stocks are poised to benefit significantly.
Renesola (SOL - Free Report) , a Zacks Rank #2 (Buy) company, announced its participation in a consortium led by French power producer Tenergie in June 2020. The consortium will develop a large-scale ground-mounted solar plant in the south of France, which is expected to produce and supply 46 GWh of electricity to approximately 10,000 households per year.
Canadian Solar (CSIQ - Free Report) , a Zacks Rank #3 (Hold) company, signed a module contract with Solarcentury in June 2019, to supply 500 MW modules to Solarcentury's projects named Cabrera and Talayuela Solar in Spain. In March 2020, Canadian Solar claimed to have a 900MWp project pipeline in Italy and announced the funding for the construction of 151MWp portfolio of Italian solar projects.
SolarEdge Technologies (SEDG - Free Report) , a Zacks Rank #3 company, entered into a contract with Enfindus in February 2020 to supply inverters and power optimizers intended for commercial and industrial (C&I) rooftop PV systems, for 1 GW of solar projects. The collaboration will be instrumental for SolarEdge’s growth in the European C&I sector and promotion of larger PV installations.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
4 Stocks Poised to Gain on Expanding European Solar Market
Since 2010, Europe witnessed the strongest growth for solar in 2019, with new solar photovoltaic (PV) capacities installed during the year than any other renewable energy source.
The growth of solar power energy in the European Union (EU) has outpaced many of the leading solar regions worldwide. Per a report by Solar Power Europe, 16.7 gigawatts (GW) of installations were added in the region last year, representing a solid 104% surge over the 8.2 GW added in 2018.
Interestingly, 26 of the 28 member states in the EU installed more solar in 2019 than in 2018. Thus, solar energy companies across the globe have identified the European solar energy market as highly prospective.
Key Catalysts Driving European Solar Market
The primary reason for solar power growth in the EU is the solar industry’s cost competitiveness. As the cost of solar energy equipment is at an all-time low and installation costs for solar panels are dropping significantly, demand for solar power is on the rise.
In recent times, the EU has adopted significant measures to boost solar power, making solar technologies more accessible to consumers. This is slowly getting accomplished through the clean energy for all Europeans package, which sets a 32% renewables target by 2030.
What’s Ahead for the European Solar Market?
In Europe, 20% of the electricity demand will be powered by solar energy by 2030. Per a Solar Power Europe report, installations of 28.2 GW are expected to get added in 2022 and exceed the 30 GW level in 2023.
Overall, the European solar market is anticipated to add 129.2 GW of total capacity within this period. Notably, in line with such overwhelming projections, the upcoming years are expected to witness continued growth in solar deployment in Europe.
Stocks in Focus
Let’s take a brief look at a few solar companies that have already carved out a place in the European solar market and are expected to expand footprint in the time to come. Considering the market’s growth prospects, these stocks are poised to benefit significantly.
Sunpower Corp. (SPWR - Free Report) launched the world's first 400-watt residential solar panels in March 2019, named Maxeon 3 solar panel, in Europe. The company currently sports a Zacks #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Renesola (SOL - Free Report) , a Zacks Rank #2 (Buy) company, announced its participation in a consortium led by French power producer Tenergie in June 2020. The consortium will develop a large-scale ground-mounted solar plant in the south of France, which is expected to produce and supply 46 GWh of electricity to approximately 10,000 households per year.
Canadian Solar (CSIQ - Free Report) , a Zacks Rank #3 (Hold) company, signed a module contract with Solarcentury in June 2019, to supply 500 MW modules to Solarcentury's projects named Cabrera and Talayuela Solar in Spain. In March 2020, Canadian Solar claimed to have a 900MWp project pipeline in Italy and announced the funding for the construction of 151MWp portfolio of Italian solar projects.
SolarEdge Technologies (SEDG - Free Report) , a Zacks Rank #3 company, entered into a contract with Enfindus in February 2020 to supply inverters and power optimizers intended for commercial and industrial (C&I) rooftop PV systems, for 1 GW of solar projects. The collaboration will be instrumental for SolarEdge’s growth in the European C&I sector and promotion of larger PV installations.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>