In this article, we will take a look at the cheap solar stocks to buy now.
With governments and corporations increasing their focus on sustainability, solar energy is among the most scalable and cost-competitive renewable energy sources to adopt. Although the long-term picture may look different, solar stocks have witnessed their fair share of volatility. This is primarily due to changes in interest rates, shifts in the supply structure, and adjustments to the supply chain.
The Energy Storage Market Outlook (ESMO), a quarterly publication by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, provides an in-depth analysis of the U.S. energy storage market. According to the analysis, published on February 23, the battery energy stationary storage (BESS) policy landscape has significantly evolved, particularly given the One Big Beautiful Bill Act (OBBBA).
In 2026, U.S. BESS deployments are poised to reach 70 GWh/35 GW, with 62.4 GWh/20.2GW attributed to the utility-scale market and 7.3 GWh/14.8 GW associated with behind-the-meter (BTM) markets, the report highlighted, adding that this translates to a capital investment of approximately $25.2 billion. By 2030, the market is expected to surpass 110 GWh/47 GW in annual installations.
In a related development, on February 26, the Massachusetts House of Representatives passed House Bill 5151, An Act Relative to Energy Affordability, Clean Power, and Economic Competitiveness. As evidence of the focus on the industry, this bill is expected to address the rising cost of utilities in Massachusetts, and Ruthie DeWit, Northeast State Affairs Director of the SEIA, said:
The solar and storage industry applauds the Massachusetts House for advancing energy affordability legislation that accelerates deployment across the Commonwealth. Solar and storage are the fastest and most affordable way to add new capacity to the grid and a critical tool for lowering prices for families. This bill removes barriers to development and reduces costs by creating a surplus interconnection service to unlock unused grid capacity and by establishing a statewide solar permitting platform that can cut average residential installation costs by $7,000.
Against this backdrop, let’s explore our list of the 6 cheap solar stocks to buy now.
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Our methodology
For this article, we began by screening for stocks in the solar industry. Next, we shortlisted companies with a Forward Price-to-Sales ratio under 2.0 and selected those that are popular among analysts and hedge funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
6. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
On March 2, JinkoSolar Holding Co., Ltd. (NYSE:JKS) declined to the lowest level over the last month, trading at $25. Based on the 1-year median price target of $25.61, this implies a mere 2.4% upside.
Earlier, on February 17, Nextpower and JinkoSolar Holding Co., Ltd. (NYSE:JKS) signed a multi-year supply agreement under which Nextpower will provide steel frames for solar modules developed at Jinko’s Jacksonville, Florida, facility. The deal incorporates more than one gigawatt of steel frames, with the potential to expand to up to three gigawatts over a period of three years. Regarding this agreement, the company’s General Manager, Nigel Cockroft, said it is in line with U.S. manufacturing priorities and offers improved durability for customers.
Over the past six months, JinkoSolar Holding Co., Ltd. (NYSE:JKS)’s stock has appreciated by nearly 7%, with a 20% surge over the past year. Overall, the company has underperformed, as the industry’s six-month and one-year stock performance is reported at 13.06% and 42.18%, respectively, according to Finviz data.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) is a Chinese company that develops and markets photovoltaic products. Founded in 2006, the company provides solar system integration services, energy storage systems, and solar power generation and solar system EPC services.
5. Tigo Energy, Inc. (NASDAQ:TYGO)
On March 2, Philip Shen from Roth MKM maintained a Buy rating on Tigo Energy, Inc. (NASDAQ:TYGO), while setting a price target of $5. Even with the lowest 1-year price target among analysts, the firm’s estimate reflects an upside potential of 53.33%.
Previously, on February 25, Gus Richard, an analyst at Northland, lifted the price target on Tigo Energy, Inc. (NASDAQ:TYGO) to $5.50 from $5 and reiterated an Outperform rating. According to TheFly, the firm has elevated its revenue, GAAP EPS, and EBITDA estimates following the company’s Q4 results, matching the consensus forecasts. This excludes the IP offload in the quarter, with the company paying off $50 million in convertible debt due in Q3 from cash.
On the same day, TheFly reported that the company’s fourth-quarter revenue of $30 million was in line with the consensus forecast of $30.02 million. As stated by Zvi Alon, Chairman and CEO of Tigo Energy, Inc. (NASDAQ:TYGO),
“Against the backdrop of a seasonally slower solar installation and cold weather period for our industry, we delivered strong fourth quarter results, with revenue up 73.8% compared to last year’s Q4.”
Tigo Energy, Inc. (NASDAQ:TYGO) is a California-based provider of solar and energy storage solutions. Founded in 2007, the company offers module-level power electronics, solar energy storage management, and energy demand forecasting, among other capabilities.
4. Canadian Solar Inc. (NASDAQ:CSIQ)
As of March 2, Canadian Solar Inc. (NASDAQ:CSIQ) has mixed analyst sentiment, with 25% analysts recommending buying the stock, 33% holding a cautious view, and the remaining 42% bearish on the stock. While the price target ranges from $5.58 to $38, the median price target of $20.50 reflects an upside potential of 20.94%.
On February 11, Canadian Solar Inc. (NASDAQ:CSIQ) announced that its e-STORAGE subsidiary has successfully delivered its first grid-connected battery energy storage system in Japan. With a rated output of 2 MW and an energy capacity of 8.25 MWh DC, the facility is situated next to the Naebo substation in Sapporo City, Hokkaido. This project is part of the Hokkaido Electric Power Network Company’s 2023 public land leasing initiative.
The system utilizes e-STORAGE’s SolBank platform, with e-STORAGE managing the design, engineering, and commissioning of the venture, and providing long-term maintenance services.
As stated by Colin Parkin, President of Canadian Solar Inc. (NASDAQ:CSIQ) and e-STORAGE,
“This energy storage project represents a key milestone in Canadian Solar’s commitment to supporting Japan’s energy transition.”
Canadian Solar Inc. (NASDAQ:CSIQ) is a Canadian provider of solar energy and battery energy storage products and solutions. With two main segments: CSI Solar and Recurrent Energy, the company serves a wide clientele, including commercial, industrial, and government end users.
3. Array Technologies, Inc. (NASDAQ:ARRY)
On February 26, Baird trimmed the price target on Array Technologies, Inc. (NASDAQ:ARRY) to $10 from $11 and reiterated a Neutral rating. According to TheFly, this downward price revision comes as the firm adjusted its model to better reflect the company’s mixed fourth-quarter performance.
On the other hand, Deutsche Bank downgraded Array Technologies, Inc. (NASDAQ:ARRY) to Hold from Buy and lowered the price target from $11 to $9 on February 25. In its analysis, the bank cited weaker adjusted EBITDA guidance and margin profile.
In the fourth quarter, Array Technologies, Inc. (NASDAQ:ARRY) delivered a revenue of $226 million, slightly above forecasts, and an adjusted loss per share of $0.01, missing the consensus estimate of $0.0013. Deutsche Bank highlighted that the management appeared optimistic during the earnings call, with a supportive environment expected for the latter half of the year.
For the quarters ahead, Array Technologies, Inc. (NASDAQ:ARRY) anticipates meaningful improvements in EPS as it continues working toward product mix expansion and DuraTrack platform enhancements. The company expects EPS of $0.19 in the first quarter and $0.27 in the subsequent quarter.
Array Technologies, Inc. (NASDAQ:ARRY) is a New Mexico-based provider of solar tracking technology products with two main segments: Array Legacy Operations and STI Operations. Incorporated in 1987, the company offers single-axis trackers, a dual-row tracker system, and a photovoltaic-powered control tracker system.
2. Sunrun Inc. (NASDAQ:RUN)
On March 2, Maheep Mandloi from Mizuho trimmed the price target on Sunrun Inc. (NASDAQ:RUN) to $22 from $25 and maintained an Outperform rating. In a research note, the analyst said that the 2026 cash generation outlook appeared flat relative to the YoY growth forecasts.
Earlier, on February 26, Sunrun Inc. (NASDAQ:RUN) reported Q4 financial results for FY25, with EPS of $0.38 and revenue of $1.16 billion. Impressively, the company outperformed the analysts’ $-0.04 EPS and $601.83 million revenue estimates. Since the surprise EPS, the stock has declined by nearly 35%.
The solid operational and financial performance in the fourth-quarter is a testament to the company’s growth trajectory, although subscriber additions came in flat relative to the year before. With Sunrun Inc. (NASDAQ:RUN) focusing on improving its storage attachment rate and accelerating cash generation, no wonder the company performed well. That said, SunRun reported cash generation of $377 million for the full year, with $187 million in Q4 alone.
For 2026, Sunrun Inc. (NASDAQ:RUN) has outlined bold plans, including enhancing its storage attachment rate and expanding its distributed power generation capacity. As stated by CEO Lynn Jurich,
“Our strong financial results reflect Sunrun’s commitment to innovation and operational excellence. We are well-positioned to continue leading the residential solar market.”
Sunrun Inc. (NASDAQ:RUN) is a California-based provider of residential solar energy systems. Founded in 2007, the company offers solar energy systems and products, as well as battery storage.
1. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
On February 26, Vikram Bagri, an analyst at Citi, cut the price target on Shoals Technologies Group, Inc. (NASDAQ:SHLS) to $8.50 from $11, while maintaining a Neutral rating. As reported by TheFly, the firm appears positive on the shares following Q4 earnings but flags a limited pipeline of catalysts in the times ahead.
Jefferies also lowered its 2026 EBITDA forecast by 20%, as it noted that the market assumed the margin versus volume issue was addressed. That said, the firm cut its price target on Shoals Technologies Group, Inc. (NASDAQ:SHLS) to $10 from $12 and reaffirmed a Buy rating on February 25. The price trim is driven by a structural decline in gross margin, as reflected in the company’s results.
On the same day, UBS lowered the price target on Shoals Technologies Group, Inc. (NASDAQ:SHLS) to $11 from $12, due to gross margin headwinds stemming from intensifying competition, product mix adjustments, and rising input costs. The firm’s bullish stance, as reflected in its Buy rating, is driven by the potential for significant upside as demand for storage from data center customers escalates.
Shoals Technologies Group, Inc. (NASDAQ:SHLS), based in Tennessee, is a provider of electrical balance of system solutions used in the solar and battery storage industries worldwide.
While we acknowledge the potential of SHLS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SHLS and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
