2025 Solar Stock Investment Analysis and Strategy Planning

Overview of the Solar Energy Industry

With the ongoing increase in global demand for clean energy, the solar industry has made significant progress in recent years. Compared to other renewable energy sources, solar energy has the following advantages:

• Rich in resources and widely distributed
• Low operating costs and easy maintenance after installation
• Technological advancements are rapid, and costs are decreasing year by year.
• Diverse application scenarios, suitable for both households and large power stations.

However, the development of the solar energy industry also faces many challenges, including policy changes, intensified market competition, and the rapid pace of technological iteration.

Analysis of Solar Energy Concept Stocks

The following table lists some representative solar concept stocks:

Data as of 2025.6.7

Analysis of Leading Solar Companies in the US Stock Market

First Solar (FSLR)

First Solar was established in 1999, focusing on the production and sales of solar photovoltaic modules. Its core advantage lies in proprietary advanced thin-film module technology, which performs better than traditional silicon-based modules in non-ideal environments. In recent years, the company has continuously expanded its production capacity, reduced manufacturing costs, and promoted large-scale photovoltaic power station projects globally.

According to the analysis by the Trefis Team, under the baseline scenario, First Solar's earnings per share are expected to stabilize around $8. Based on a price-to-earnings ratio of 22-25, the reasonable valuation range is $175-$200. In an optimistic scenario, by 2026, earnings per share may rebound to $10, and the stock price is expected to reach $250.

Nextracker (NXT)

Nextracker is a provider of intelligent tracking systems focused on utility-scale solar power plants. The company's innovative solutions significantly enhance power generation efficiency and optimize project economics by real-time adjustment of photovoltaic panel orientations.

In the latest quarterly financial report released in May 2025, Nextracker's performance significantly exceeded analysts' expectations, and its stock price soared nearly 12%. Company management stated that the current strong performance lays the foundation for continued growth.

Enphase Energy (ENPH)

Enphase Energy was founded in 2006, focusing on the design and manufacturing of solar microinverter systems. In recent years, the company has gradually expanded its business into energy storage and management software, committed to providing comprehensive residential energy solutions.

Affected by the Sino-U.S. tariff war, Enphase is facing upward pressure on costs in the short term. However, the company is actively promoting the diversification of battery cell supply, and it is expected that by the second quarter of 2026, the vast majority of battery supply will shift to non-China sources.

Analysis of Leading Solar Stocks in Taiwan

Delta Electronics (2308)

Delta Electronics' operations in 2024 are stable, with consolidated revenue reaching NT$421.1 billion, a year-on-year increase of 5%. Profitability continues to be impressive, with a gross margin maintained at a high level of 32.4%. Earnings per share (EPS) is NT$13.56, and all financial indicators show a steady growth pattern.

Morgan Stanley recently raised the target price for Delta Electronics from NT$440 to NT$485, with a focus on the company's technological breakthroughs in AI data centers and industrial sector 800V high-voltage direct current (HVDC) power solutions.

Zhongxing Electric (1513)

In 2024, Chung Hsing Electric's performance was outstanding, with a net profit after tax reaching 3.623 billion New Taiwan Dollars, a significant increase of 128% compared to the same period last year, setting a historical record. In the first quarter of 2025, the company continued to benefit from the ongoing release of orders under Taipower's resilient grid project, achieving a new high in revenue for the same period.

According to the latest survey by FactSet, analysts have raised the median target price for ZTE from 182.5 yuan to 195.5 yuan, an increase of 7.12%.

Investment Strategy Recommendations

1. Diversified Investment: Consider allocating investments in leading solar companies in both the US and Taiwan stock markets to reduce the risk of relying on a single market.

2. Monitor Policy Trends: Closely track changes in renewable energy policies in various countries and adjust the investment portfolio in a timely manner.

3. Technological Innovation: Prioritize companies that are leading in technological innovation, such as First Solar and Enphase Energy.

4. Financial Health: Focus on companies with a healthy balance sheet and ample cash flow, such as Nextracker.

5. Long-term Holding: The solar industry experiences cyclical fluctuations, and it is recommended to adopt a long-term investment strategy and patiently wait for the industry's development dividends.

6. Regular Review: Evaluate the performance of the investment portfolio each quarter and adjust positions in a timely manner according to market changes.

7. Risk Management: Set stop-loss levels and limit the position of a single stock to no more than 10% of the overall investment portfolio.

Investors should fully understand the relevant risks before making investment decisions, and develop appropriate investment strategies based on their personal risk tolerance and investment goals.