Solar Stocks: The 6 Largest U.S. Stock Market Cap Companies

Under the vigorous promotion of the Biden administration, the growth rate of the US solar energy market is expected to soar in the next few years, and solar energy stocks in the US stock market will also usher in rare investment opportunities.

According to the latest report of the Solar Energy Industry Association and Wood Mackenzie, solar energy will contribute 50% of new power generation capacity in 2022, and the installed capacity of solar power generation in the US market will reach 20.2 GW in the same period. Furthermore, from 2022 to 2033, the company expects installed solar capacity in DC to increase from 141 GW to 700 GW.

In mid-2022, U.S. President Joe Biden will take executive measures to encourage domestic clean energy manufacturing.

The development trend of solar energy industry in the United States

In 2021, the number of global solar enterprise transactions will reach 58, the highest level since 2010. Total funding (including venture capital and M&A deals) reached $27.8 billion, an increase of 91% compared to 2020. Total solar corporate financing in 2022 dropped 13% to $24.1 billion, but the number of mergers and acquisitions will increase by 20% y-o-y, and venture capital and private equity financing will increase by 56% to a record $7 billion. Of the 128 solar M&A deals in 2022, eight were worth more than $1 billion.

Here is a list of the largest solar stocks in the U.S. by market capitalization:

1. $NextEra(NEE)$, Market cap: $153.982 billion

NextEra Energy Resources is North America's largest clean energy company with a global leader in wind and solar power generation. The company has more than 150 wind and solar cosmic energy centers covering 26 states in the United States and 4 provinces in Canada, with an installed capacity of more than 17,000 megawatts. The company recently declared a quarterly dividend of $0.4675 per common share.

In the first quarter of 2023, NextEra subsidiary Florida Power & Light added nearly 970 MW of low-cost solar capacity, for a total installed solar capacity of nearly 4,600 MW.

2. $First Solar(FSLR)$,Market cap: $19.569 billion

First Solar designs and manufactures solar power systems and manufactures solar modules using thin-film semiconductor technology, and the company's support services include financing, construction, maintenance and recycling of retired solar panels.

In May 2023, First Solar acquired Evolar, a European thin-film technology leader, which will help the company accelerate the development of commercial-grade thin-film photovoltaics.

3. $SolarEdge(SEDG)$, Market cap: $16.681 billion

SolarEdge Technologies calls itself a global leader in smart energy technologies, providing solutions for photovoltaics, storage, electric vehicle charging, batteries, uninterruptible power supplies and grid services. The solar inverter SolarEdge DC developed by the company reduces energy production costs while maximizing power generation.

In early 2023, SolarEdge announced a multi-year strategic partnership agreement with Freedom Forever, a leading U.S. residential solar installer.

4. $Brookfield Renewable Partners LP(BEP)$, Market cap: $8.693 billion

The asset portfolio of Brookfield Renewable Partners, a large global renewable energy power generation company, includes hydropower, wind and solar power plants, and energy storage assets. It covers nearly 6,000 power generation facilities in North America, South America, Europe and Asia, with an installed capacity of about 21,000 megawatts.

In 2022, Brookfield acquired Scout Clean Energy and Standard Solar. In the same year, it teamed up with large uranium producer $Clear Channel Outdoor Holdings Inc(CCO)$, $Cameco(CCJ)$ to acquire $Westinghouse Air Brake(WAB)$.

5. $Clearway Energy Inc(CWEN)$, Market cap: $6.162 billion

Clearway Energy, a U.S. electric utility company, owns infrastructure assets such as conventional power generation, renewable energy, and thermal power. The company provides customers with low-cost clean energy from solar and wind energy, with a scale of more than 7 megawatts of wind, solar and energy storage.

6. $Sunrun(RUN)$, Market cap: $3.6 billion

The largest residential solar power provider in the United States, battery storage and energy service company SunRun is a pioneer in home solar service plans, bringing clean energy with no upfront costs to thousands of households. Additionally, the company offers Brightbox home battery solutions.

In 2020, $Sunrun(RUN)$ acquired $Vivint Solar(VSLR)$ , the No. 2 player in the US residential solar market.

Solar ETFs

In addition to picking individual stocks, investors can also consider investing in solar energy exchange-traded funds (ETFs). At present, there is only one solar energy ETF in the US stock market, $Invesco Solar ETF(TAN)$ , which tracks the MAC Global Solar Energy Index, an index that includes a basket of solar energy companies.