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France to Double Renewable Output by 2035: Solar Stocks to Gain
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Per a recent report by Bloomberg Law, France is targeting to more than double the nation’s renewable power capacity over the next 12 years. In particular, the French government plans to install wind, solar and hydropower production capacity in the range of 140-175 gigawatts (GW) by 2035.
This installation plan reflects more than 100% improvement from 63.5 GW of renewable energy installed in 2022. Such a remarkable clean energy expansion plan has put the spotlight on solar stocks like First Solar (FSLR - Free Report) , Enphase Energy (ENPH - Free Report) and SolarEdge Technologies (SEDG - Free Report) , which have a solid presence in France.
A Brief Note on the French Solar Market
Approximately two-thirds of France’s electricity comes from the country’s 56 nuclear reactors, as stated by the International Trade Administration. However, in tandem with the changing dynamics of the power generation market lately, steady growth has been observed in the usage of renewable energies in the nation. Renewables accounted for 11.7% of primary energy consumption and 25.3% of gross final energy consumption in 2019.
Impressively, France has been an electricity exporter for more than the past 30 years. This reflects the solid demand for electricity generation that this nation enjoys and boosts the need for more renewable-powered electricity generation.
Amid this scenario, the latest target announced by the French government to expand its renewable power capacity by more than 100% by 2035, with solar constituting a major part of this expansion, has set the stage for a booming solar market in France.
Solar Stocks to Gain
Per a recent report by the Mordor Intelligence firm, the solar energy market in France is projected to witness a CAGR of 14.2% over the 2023-2028 period. This, along with the aforementioned discussion, should bolster the growth prospects of the following solar stocks:
First Solar: The company has been a trusted, reliable partner to French renewable energy companies for more than a decade. FSLR supports France's decarbonization ambitions by delivering high-quality, high-performance, eco-efficient photovoltaic (PV) modules that offer cleaner solar electricity with the lowest carbon footprint.
The stock’s price rose 3.9% following the French government’s announcement to double its renewable power capacity on Oct 10. The Zacks Consensus Estimate for FSLR’s 2023 sales indicates an improvement of 35.2% from the 2022 reported figure.
Enphase Energy: France remains a major revenue contributor for Enphase Energy. Its sell-through of microinverters in Europe was 13% higher in the second quarter compared with the first quarter, with France being one of the major contributing nations. In October 2023, ENPH rolled out its 3-Phase Capable IQ Combiner for the European solar market, with France being one of the primary markets where this product was introduced.
The stock’s price has risen 4% since Oct 10. ENPH boasts a long-term earnings growth rate of 20.4%.
SolarEdge Technologies: The company witnessed record revenues from France in the first quarter of 2023. In particular, its solar revenues from France grew 31% quarter over quarter.
The stock’s price has rallied 1.2% since Oct 10. SEDG boasts a long-term earnings growth rate of 23.6%.
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France to Double Renewable Output by 2035: Solar Stocks to Gain
Per a recent report by Bloomberg Law, France is targeting to more than double the nation’s renewable power capacity over the next 12 years. In particular, the French government plans to install wind, solar and hydropower production capacity in the range of 140-175 gigawatts (GW) by 2035.
This installation plan reflects more than 100% improvement from 63.5 GW of renewable energy installed in 2022. Such a remarkable clean energy expansion plan has put the spotlight on solar stocks like First Solar (FSLR - Free Report) , Enphase Energy (ENPH - Free Report) and SolarEdge Technologies (SEDG - Free Report) , which have a solid presence in France.
A Brief Note on the French Solar Market
Approximately two-thirds of France’s electricity comes from the country’s 56 nuclear reactors, as stated by the International Trade Administration. However, in tandem with the changing dynamics of the power generation market lately, steady growth has been observed in the usage of renewable energies in the nation. Renewables accounted for 11.7% of primary energy consumption and 25.3% of gross final energy consumption in 2019.
Impressively, France has been an electricity exporter for more than the past 30 years. This reflects the solid demand for electricity generation that this nation enjoys and boosts the need for more renewable-powered electricity generation.
Amid this scenario, the latest target announced by the French government to expand its renewable power capacity by more than 100% by 2035, with solar constituting a major part of this expansion, has set the stage for a booming solar market in France.
Solar Stocks to Gain
Per a recent report by the Mordor Intelligence firm, the solar energy market in France is projected to witness a CAGR of 14.2% over the 2023-2028 period. This, along with the aforementioned discussion, should bolster the growth prospects of the following solar stocks:
First Solar: The company has been a trusted, reliable partner to French renewable energy companies for more than a decade. FSLR supports France's decarbonization ambitions by delivering high-quality, high-performance, eco-efficient photovoltaic (PV) modules that offer cleaner solar electricity with the lowest carbon footprint.
The stock’s price rose 3.9% following the French government’s announcement to double its renewable power capacity on Oct 10. The Zacks Consensus Estimate for FSLR’s 2023 sales indicates an improvement of 35.2% from the 2022 reported figure.
Enphase Energy: France remains a major revenue contributor for Enphase Energy. Its sell-through of microinverters in Europe was 13% higher in the second quarter compared with the first quarter, with France being one of the major contributing nations. In October 2023, ENPH rolled out its 3-Phase Capable IQ Combiner for the European solar market, with France being one of the primary markets where this product was introduced.
The stock’s price has risen 4% since Oct 10. ENPH boasts a long-term earnings growth rate of 20.4%.
SolarEdge Technologies: The company witnessed record revenues from France in the first quarter of 2023. In particular, its solar revenues from France grew 31% quarter over quarter.
The stock’s price has rallied 1.2% since Oct 10. SEDG boasts a long-term earnings growth rate of 23.6%.
Image Source: Zacks Investment Research