In this article, we cover the 11 Best Wind Power and Solar Stocks to Buy According to Analysts.
It’s not all doom and gloom for wind and solar companies, despite the Trump administration’s tightening of long-standing eligibility requirements for clean energy tax credits. The US Treasury Department’s release of guidance on the types of projects that qualify for the tax credits, which is less restrictive, has given a new lease of life to the embattled sector.
President Donald Trump has rattled the sector by reiterating plans to phase out tax credits for new wind and solar projects unless they begin construction in July 2026. Initially, developers could claim tax credits on spending at least 5% of the project cost without any other restriction.
“After weeks of speculation and market coalition around a higher hurdle on both the 5% rule + physical work rule, today’s guidance was surprisingly light on changes,” Jefferies analysts wrote, and called it a “clear win” for residential solar.
Under the new tax and spending bill signed into law, solar and wind developments are eligible for tax credits if they begin construction within 12 months of the bill’s enactment.
With the new provision, small project developers can claim tax credits on spending at least 5% of the project cost. Similarly, large project developers can also qualify for credits once they undertake significant work. Analysts at Citi have echoed the new legislation as better than anticipated.
The rapid expansion of new artificial intelligence data centers and cryptocurrency mining facilities has created an unprecedented demand for renewable energy sources. Consequently, the Department of Energy predicts that power demand from data centers could triple by 2028, presenting unique opportunities that wind and solar companies can capitalize on.
With that in mind, let’s look at the best wind power and solar stocks to buy amid the anticipated spike in power demand amid the AI boom.
Our Methodology
To determine the top wind and solar energy stocks recommended by analysts, we reviewed multiple online rankings to identify companies actively engaged in renewable energy projects. We then narrowed the list to stocks favored by leading hedge funds as of Q2 2025 and with positive upside potential, as of September 10. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Wind Power and Solar Stocks to Buy According to Analysts
11. Shoals Technologies Group Inc. (NASDAQ:SHLS)
Stock Upside Potential: 7.26%
Number of hedge fund holders: 27
Shoals Technologies Group Inc. (NASDAQ:SHLS) is one of the best wind power and solar stocks to buy according to analysts. On September 8, Jefferies lifted its price target of the stock to $9 from $6 while reiterating a ‘Buy’ rating. The price target hike comes as the stock shows strong momentum, depicted by a 134% gain over the past six months.
The research firm remains confident about the company’s long-term prospects, with top-line growth expected through 2027. The growth would come as the company capitalizes on strong demand for battery energy storage systems among independent power producers and hyperscalers.
In addition to strong demand, the company’s push to expand into Australia and Latin America is also expected to accelerate growth. Consequently, Jefferies remains confident that Shoals will achieve mid-to-high 30s gross margins with capital expenditure stabilizing.
Shoals Technologies Group (NASDAQ:SHLS) makes important electrical parts that help solar power systems and other clean energy setups, like data centers, work smoothly. The company creates and sells products used in solar and battery storage projects, such as easy-to-connect cables, cabinets, and special wiring systems called big lead assemblies (BLA).
10. First Solar Inc. (NASDAQ:FSLR)
Stock Upside Potential: 9.40%
Number of hedge fund holders: 68
First Solar Inc. (NASDAQ:FSLR) is one of the best wind power and solar stocks to buy according to analysts. Over the past three months, 17 Wall Street analysts have rated First Solar (FSLR) stock, with 15 issuing a Buy, 1 a Hold, and 1 a Sell, resulting in a consensus rating of “Strong Buy.” Their 12-month price forecasts range from $177.00 to $287.00, with an average target of $222.31, suggesting a potential upside of 9.40% from the current price of $203.21.
Reinforcing this bullish sentiment, JPMorgan reaffirmed First Solar as its top pick on August 25, projecting the stock could climb to $241 by December.
According to the investment bank, the stock is well positioned to edge higher ahead of the RE+ conference and the potential impact of a new US factory. JPMorgan expects the conference to be a positive catalyst for the embattled solar sector, given the optimistic commentary expected regarding the sector’s fundamentals.
Amid regulatory concerns and inventory oversupply, First Solar has held steady, as evidenced by the stock rallying by more than 8% year to date. The rally has followed impressive second-quarter results, in which earnings totaled $3.18 per share, beating estimates of $2.66 per share.
Likewise, JPMorgan remains confident about the company’s prospects, especially with the unveiling of a capital-light finishing factory that will shield it from the impact of tariffs on products from Vietnam and Malaysia. It also favors First Solar’s risk-reward profile, citing its superior visibility into medium-term growth prospects.
First Solar Inc. (NASDAQ:FSLR) manufactures advanced, responsibly produced thin-film solar technology and modules for utility-scale applications, providing a competitive, high-performance alternative to traditional crystalline silicon panels. It also offers engineering, procurement, and construction (EPC) services for solar power plants.
