Before delving into the current state of solar power stocks, we want to make it clear that this blog isn’t intended to direct you into making changes to your portfolio. Only your Investment Manager can offer sound investment strategies based on your specific financial goals. Yet considering comments made by the International Energy Agency (IEA) Executive Director Fatih Birol in recent news, we knew solar power stocks was a must-blog topic. Why? Because those clean energy investments have overtaken investments in oil for the first time ever. 

When Mr. Birol said “Clean energy is moving fast — faster than many people realize” he wasn’t kidding. He added, “For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was one-to-one.” CNN reported that solar power spending is due to hit more than $1 billion a day or around $380 billion on a yearly basis in 2023. This mind-blowing growth of solar energy is due in part to the federal Solar Investment Tax Credit, declining costs, and increasing demand of clean electricity in the public and private sector, according to the SEIA, Solar Energy Industries Association®.

If you are considering investing in solar energy at your home or place of business, The Department of Energyhas an online guide that can answer a lot of questions you may have. Keep in mind, other than the satisfaction gained in reducing your carbon footprint, it’s unlikely you’ll see a return on your investment for years to come. Installing solar energy is expensive and the amount of money “made” will be based on the amount of energy saved compared to previous monthly usages multiplied by the number of years spent at the property after solar energy is installed.

Is there money to be made by investing in solar stocks? Discuss the topic with your investment manager and, in the meantime, read the article Forbes wrote about the massive growth in sales solar power companies are seeing, and the “Solar Power Stocks” they listed. 

The bottom line is that recent news has given us hope the world will reach net-zero emissions by mid-century, which is the goal.