In this article, we will discuss the 8 Best Solar Energy Stocks to Buy Right Now.
On May 1, Mark Widmar, CEO of First Solar, joined ‘Squawk on the Street’ on CNBC to discuss the demand for solar energy. Widmar’s company reaffirmed its full-year guidance after delivering solid Q1 2026 earnings, while he also acknowledged ongoing challenges, specifically trade policy uncertainty and tariffs impacting the global supply chain. Widmar highlighted the significant load growth and the increasing need for electrons to support industrial expansion, particularly the massive energy requirements of AI. He explained that the industry must be nimble and agile to manage the friction caused by shifting policies, though he expects these pressures to lessen as the focus remains on reshaping the industry to create a more stable domestic presence. He emphasized that the path forward involves providing tech that adds significant value to customers who prioritize reliable and affordable energy.
Widmar advocates for an all-of-the-above strategy to ensure energy diversification and reliability. He compared the energy landscape to the military, noting that just as different branches must cooperate for success, different forms of generation must be optimized together to provide power at the most affordable cost points. He observed that because of current constraints with grid connection, there is a significant shift toward behind-the-meter or off-grid generation. This approach allows large-scale users to co-locate generation on-site, often using batteries to create a hybrid structure that combines grid-connected and independent capacity. Discussing the economic foundation of the sector, Widmar insisted that while subsidies have been helpful, the industry must eventually be viable and economical on its own merits. He argued that certain renewable technologies represent the lowest cost of energy and electricity available today.
Our Methodology
We used the Finviz Stock Screener to identify solar energy stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.
Note: All data was sourced on May 8.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best Solar Energy Stocks to Buy Right Now
8. Daqo New Energy Corp. (NYSE:DQ)
Number of Hedge Fund Holders: 20
Daqo New Energy Corp. (NYSE:DQ) is one of the best solar energy stocks to buy right now. On April 29, Daqo New Energy reported a sharp revenue decline to $26.7 million for Q1 2026, down from $221.7 million in the previous quarter. This resulted in a gross loss of $139.4 million and a net loss of $88.4 million, or $1.31 per ADS. The downturn was primarily driven by a decision to reduce sales volume to avoid selling below production costs, coupled with significant inventory impairment provisions.
Operationally, Daqo New Energy Corp. (NYSE:DQ) produced 43,402 MT of polysilicon, exceeding its guidance despite an industry-wide slowdown. However, sales volume dropped to 4,482 MT as management maintained a disciplined approach toward low market prices. Total production costs rose slightly to $5.95/kg, yet the company ended the quarter with a robust balance sheet featuring $2.00 billion in cash and liquid assets and zero debt.
For the remainder of 2026, the company expects a full-year production range of 140,000 MT to 170,000 MT, with Q2 targets set between 35,000 MT and 40,000 MT. Management anticipates that government anti-involution policies will eventually stabilize the current overcapacity. Looking ahead, Daqo remains focused on cost optimization through digital transformation and high-efficiency N-type technology to navigate the market recovery.
Daqo New Energy Corp. (NYSE:DQ) is a provider of polysilicon to photovoltaic product manufacturers. The company’s products are utilized in ingots, wafers, and modules for solar power solutions.
7. SunPower Inc. (NASDAQ:SPWR)
Number of Hedge Fund Holders: 22
SunPower Inc. (NASDAQ:SPWR) is one of the best solar energy stocks to buy right now. On April 28, SunPower closed a $41 million private placement of senior convertible debenture notes featuring a 10% coupon. The proceeds are designated to enhance liquidity and facilitate debt reduction, specifically by paying off $28.75 million in existing obligations. Additionally, investors holding prior 7.0% convertible notes agreed to exchange $21.25 million of principal for equity, contributing to a total debt reduction of $40 million for the company.
As part of the transaction, Sunder, a recently acquired solar sales firm, swapped $10 million in acquisition debt for notes in this new offering. CEO T.J. Rodgers indicated that the resulting cash plan is designed to sustain operations through 2026, targeting a move into positive cash flow by 2027. This financial restructuring arrives amid broader market volatility, including the recent bankruptcy of a major competitor.
Despite industry headwinds, SunPower Inc. (NASDAQ:SPWR) climbed to the number five spot in US residential solar and is targeting the number three position. Growth is being further supported by the recruitment of ~600 sales representatives from recently distressed firms. Detailed insights into the cash plan and future outlook are scheduled to be discussed in the upcoming investor report on May 12.
SunPower Inc. (NASDAQ:SPWR) is a US-based residential solar installation, storage, and technology provider. The company focuses on high-efficiency solar panels, battery systems, and financing solutions.
6. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 35
Sunrun Inc. (NASDAQ:RUN) is one of the best solar energy stocks to buy right now. On May 6, Sunrun reported total revenue of $722.2 million for Q1 2026, marking a 43% increase compared to the same period last year. While the company achieved a record storage attachment rate of 73% and a net income of $167.6 million, cash generation was negative $59 million. Management attributed this cash deficit to a shift in the timing of project finance activities into Q1 and investments in equipment safe harbor.
The company continued to strengthen its financial position by paying down $92 million of recourse debt, including the remaining balance of its 2026 convertible senior notes. Sunrun Inc. (NASDAQ:RUN) also expanded its capital access by increasing its warehouse facility commitments to $2.7 billion and extending its availability through 2029. Despite a 25% year-over-year decrease in subscriber additions during the quarter, the total customer base surpassed 1.1 million, reflecting an 11% growth in subscribers compared to the prior year.
Looking forward, Sunrun reiterated its full-year 2026 cash generation guidance of $250 million to $450 million. The company expects Q2 aggregate subscriber value to fall between $1.1 billion and $1.2 billion, with contracted net value creation estimated between $100 million and $200 million. Leadership remains focused on a storage-first strategy and using its scale to navigate current industry dislocations and stabilize the power grid.
Sunrun Inc. (NASDAQ:RUN) designs, develops, installs, sells, owns, and maintains residential solar energy systems. It sells solar services and installs solar energy systems for homeowners.
While we acknowledge the potential of RUN 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 RUN and that has 100x upside potential, check out our report about the cheapest AI stock.
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