In this article, we will take a look at some of the most undervalued solar stocks to buy now.
As the world shifts towards clean and green energy solutions, the one sector that is taking center stage is the solar industry. Although the growth potential of this emerging market is high, some stocks are trading way below their value.
Apart from the monetary gains, many believe that investing in the solar market is a great way to support sustainability. There are two kinds of benefits that the investors can capitalize on in the solar case study: demand surges and cost declines.
According to the latest report by the International Energy Agency (IEA), Global solar module manufacturing capacity is anticipated to surpass 1.5 TW by 2035. The IEA expects global electricity demand to surge by nearly 4% annually through 2027, with emerging economies accounting for 85% of the increase in demand. With this, we will take a look at some of the undervalued solar stocks to invest in.
Our Methodology
We have compiled a list of the 7 most undervalued solar stocks to buy now. Using the Finviz screener, we first selected the stocks in the solar industry. Then, we shortlisted only those stocks that have a forward P/E of less than twenty-five and an upside potential. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s 2Q2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
Number of Hedge Fund Holdings: 5
In the first quarter, Nuveen LLC raised its stake in JinkoSolar Holding Co., Ltd. (NYSE:JKS) through the purchase of 32,100 shares, valued at approximately $598,000. According to the recent disclosure with the SEC, the global asset management firm now owns 0.06% of the company.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) has announced plans to sell 300.2 million A shares of Jiangxi Jinko, the company’s principal operating subsidiary, in an attempt to raise funds. Priced at no less than 70% of Jiangxi Jinko’s average trading price over the past 20 trading days, the shares are offered to qualified institutional investors.
As cited by Mr. Xiande Li, chairman and CEO of JinkoSolar Holding Co., Ltd. (NYSE:JKS),
“We believe that the sale of A Shares will strengthen our cash flows, improve our cash position, support our ongoing business operations, and enhance our resilience to risks. Meanwhile, it allows us to preserve the capacity for future shareholder returns, reinforcing long-term shareholder value.”
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.
6. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holdings: 9
According to a Marketbeat report, Canadian Solar Inc. (NASDAQ:CSIQ) has been given an average rating of “Hold” by seven brokerages, out of which the stock holds two “Sell”, three “Hold”, and two “Buy.”
Earlier on September 11, 2025, Canadian Solar Inc. (NASDAQ:CSIQ) announced its recognition as a Tier 1 PV module and Battery Energy Storage System supplier in S&P Global Commodity Insights’ inaugural 2025 Tier 1 Cleantech Companies list. This means that the company is now among the top global providers of photovoltaic modules and energy storage solutions. Although it wasn’t all sunshine in the past, the company’s future looks somewhat bright.
As expressed by the Chairman and CEO, Dr. Shawn Qu,
“This recognition highlights our financial and operational strength, our leadership in sustainable innovation, and our commitment to supporting customers worldwide with reliable, high-quality clean energy solutions.”
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 is committed to fostering sustainable development.
5. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Number of Hedge Fund Holdings: 27
Jefferies has reiterated its ‘Buy’ rating on Shoals Technologies Group, Inc. (NASDAQ:SHLS), while raising the price target to $9.00 from $6.00, reflecting a surge of nearly 30.63% from the current price.
This confidence in the company’s operations is fueled by the growing popularity of the battery energy storage systems (BESS) business, enhanced performance from its core OEM segment, and expansion into Australia and Latin America.
Earlier on September 11, 2025, Shoals Technologies Group, Inc. (NASDAQ:SHLS) received a new U.S. patent (‘295 patent) for its Big Lead Assembly (BLA) wiring solution. This attempt to expand the company’s intellectual property portfolio adds to the current infringement lawsuit against Voltage, LLC in North Carolina.
As stated by Brandon Moss, the Director and CEO of Shoals Technologies Group, Inc. (NASDAQ:SHLS),
“It not only safeguards our proprietary BLA technology but also reinforces our leadership in the U.S. solar market. By protecting our intellectual property, we’re ensuring fair market dynamics so customers can trust the quality of the solutions they deploy on energy projects.”
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a Tennessee-based provider of electrical balance of system (EBOS) solutions and components. Founded in 1996, the company serves a diverse clientele, including charge point operators, independent power producers, and construction firms.
4. Array Technologies, Inc. (NASDAQ:ARRY)
Number of Hedge Fund Holdings: 36
Analysts at BofA have downgraded Array Technologies, Inc. (NASDAQ:ARRY) to “Underperform” from “Neutral” while reducing the price target to $7, down from $8. As India tariffs double from 25% to 50% and Mexico-gearsets face a new 25% duty, the firm is pessimistic about the company’s outlook and now views its fiscal 2025 margin target as “unrealistic.”
Looking at the bigger picture, Array Technologies, Inc. (NASDAQ:ARRY) has delivered a year-to-date return of 24.01%, nearly twice that of the market. There’s no doubt the company performed well during the first half of 2025, favoring a rebound following poor 2024 results. Ultimately, we can expect the company to not only capture a greater market share globally in the times ahead but also maintain its position in a sector undergoing consolidation.
Although there are risks, Array Technologies, Inc. (NASDAQ:ARRY) can unlock significant value in the solar sector if and only if the turnaround takes place smoothly in 2025 and the company sustains its growth momentum.
Array Technologies, Inc. (NASDAQ: ARRY) is a New Mexico-based provider of solar tracking technology products, operating in the United States, Brazil, Australia, and globally. Incorporated in 1987, the company has two main segments: Array Legacy Operations and STI Operations.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holdings: 39
AQR Capital Management LLC expanded its holdings in Enphase Energy, Inc. (NASDAQ:ENPH) by a whopping 9,236.6%, according to the latest disclosure with the SEC. Following the acquisition of 684,157 shares, the firm now owns 0.53% of the company, translating to an investment of $41,483,000.
Although Enphase Energy, Inc. (NASDAQ:ENPH) faces risks such as expiring solar tax credits, fierce competition, and market uncertainty, the company remains GAAP profitable and sustains a net cash balance sheet. What’s quite interesting about the company is its focus on microinverters, a technology that is believed to deliver superior reliability in contrast to string inverters.
When 2027 begins, Enphase Energy, Inc. (NASDAQ:ENPH) is expected to start benefitting from softer year-over-year comparisons. As expectations build for interest rate cuts, the company’s rebound becomes more evident, fueled by the reignition of U.S. residential solar demand.
Enphase Energy, Inc. (NASDAQ:ENPH), headquartered in Fremont, California, is a provider of home energy solutions for the solar photovoltaic industry. Incorporated in 2006, the company is committed to bringing solar energy to the next level.
2. Nextracker Inc. (NASDAQ:NXT)
Number of Hedge Fund Holdings: 50
Jon Windham, an analyst at UBS, reaffirmed a ‘Buy’ rating on Nextracker Inc. (NASDAQ:NXT) with a price target of $75.00, implying an upside potential of nearly 12% from the current level. This optimism follows the company’s acquisition of Origami Solar, a U.S.-based producer of steel solar panel frames.
This $53 million all-cash acquisition demonstrates a shift in the company’s M&A strategy as Nextracker Inc. (NASDAQ:NXT) transitions from its emphasis on integrated solar project platforms for developers to supplying utility-scale hardware manufacturers. With Origami Solar developing frames utilizing 100% U.S. steel, the company can benefit from added upside from protectionist policy trends.
The firm highlighted that such dynamics could enhance the demand for locally manufactured energy hardware, which in turn would position Nextracker Inc. (NASDAQ:NXT) well in the market. Commenting on the agreement, CEO Dan Shugar stated,
“helps to unlock opportunities for localized manufacturing from steel coil through final fabrication, while delivering real customer benefits like faster panel installation and improved long-term system performance.”
Nextracker Inc. (NASDAQ:NXT) is a California-based company that provides solar tracker technologies and solutions. The core offerings of the company include NX Horizon, NX Horizon-XTR, NX Horizon Hail Pro, NX Horizon Low Carbon, and TrueCapture.
1. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holdings: 68
According to the recent disclosure with the SEC, Optimize Financial Inc has increased its position in First Solar, Inc. (NASDAQ:FSLR) by 76.7% in the first quarter. With the purchase of 6,392 shares, the wealth management firm now owns 14,724 shares of the company’s stock worth $1,862,000.
From top-notch thin-film technology and healthy margins to robust footing in large-scale utility projects, the reasons to believe in First Solar, Inc. (NASDAQ:FSLR) are many. The company’s differentiated manufacturing technology has enabled it to enhance its order backlog, increase margins, and lead the market.
With its strong moat starting to shine, First Solar, Inc. (NASDAQ:FSLR) is considered the greatest of the U.S. clean energy market, a market with many players. With that being said, the company benefits from demand hikes driven by autonomous technologies, favorable U.S. manufacturing policies, and its positioning in cadmium telluride with a low Levelized Cost of Energy.
First Solar, Inc. (NASDAQ:FSLR) is an Arizona-based provider of photovoltaic (PV) solar energy solutions. Founded in 1999, the company is focused on innovation and operational excellence.
While we acknowledge the potential of FSLR 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 FSLR and that has 100x upside potential, check out our report about this cheapest AI stock.
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