Friends who have been looking at solar stocks lately are probably asking the same question—can you still enter now? My observation is that if you’re looking at the long term, it hasn’t even really started yet.

To be honest, over the past two years, the energy transition has already shifted from slogans to reality. Demand for electricity from AI data centers has been soaring, governments around the world are getting increasingly strict on net-zero emissions, and solar power is becoming the main protagonist in green energy supply. By 2026, there are three core support points for solar stocks that are worth paying attention to.

First is the power shortage for AI data centers. Giants like NVIDIA and Amazon are building data centers around the world. These facilities need 24-hour-a-day, stable clean energy, which directly drives a massive surge in demand for solar paired with energy storage. Second is the technology generation shift. Traditional PERC batteries have become a thing of the past, and high-efficiency technologies such as TOPCon and HJT will be fully adopted across 2026, with higher conversion efficiency and improved profitability. On top of that, the subsidy impact of the U.S. “Inflation Reduction Act” is entering its harvest period this year, and the leading stocks that build factories in the U.S. are basically a major positive.

The logic for short-term investors is a bit different. The ups and downs of solar stocks are usually highly correlated with policy tailwinds or surges in energy prices. In 2026, the period after the U.S. election will bring policy adjustments, and AI infrastructure development will be at its peak. Short-term momentum mainly depends on whether month-over-month or year-over-year monthly revenue growth turns positive. If you want short-term profits, I suggest keeping a close watch on revenue guidance during earnings seasons and entering when the technicals break through the downward trend line—during periods of volatility, you can often find good opportunities.

When it comes to the leading solar stocks in the U.S., my favorite is First Solar. This company is currently the strongest solar module maker among U.S.-listed stocks. It uses proprietary thin-film technology instead of silicon wafers. Its power generation performance is especially strong in high temperatures, making it particularly well-suited for large-scale power plants. Its new plant in South Carolina is entering a capacity ramp-up phase this year. Order visibility is already scheduled through 2030, and its cash flow is also extremely stable. It’s the first choice for utility-style investors and suits people who want steady growth.

Enphase Energy is taking a different path. First Solar focuses on large-scale, ground-mounted projects, while Enphase focuses on the distributed residential rooftop power market. Their microinverters allow each solar panel to operate independently, delivering higher and safer power generation efficiency than string inverters. By 2026, it has successfully transformed into a home energy management platform, and its battery storage systems are also selling well. In an environment where electricity prices are surging, it’s one of the most direct beneficiaries.

If you’re concerned that competition in manufacturing is too intense, you might consider downstream players like NextEra Energy. This is the world’s largest renewable energy operator, and its profit model is essentially based on collecting electricity fees. As a preferred partner for AI data centers seeking green power, it stands out for stable dividend payouts—its dividends have been increasing for more than 30 years. During interest rate-cutting cycles, it’s especially attractive for investors who want stable dividend income.

In Taiwan stocks, solar shares were often looked down on in the past, but in 2026, Taiwan-based manufacturers will gradually transition and start earning big money from technology and specialized applications. Eversun not only makes modules—the hottest themes for it are low-earth orbit satellites and AI power. It is a supplier of solar panels for SpaceX, and as Starlink’s satellite launch volume increases significantly, its profit structure has clearly improved. In addition, with Taiwan’s policy requiring solar panels to be installed on buildings coming into effect, as a local market share leader, Eversun benefits most directly.

United Renewable Energy’s this year is a harvesting year after completing debt reduction and technological optimization. It has fully moved into high-efficiency TOPCon production lines, and its gross margin has jumped from single digits to double digits. For Taiwanese investors who like low-base turnaround stocks, the starting valuation here is relatively attractive.

Although Delta Electronics is categorized as an electronic components company, in the solar space it holds an absolute leading position in inverters and energy management systems. If you’re worried about price volatility of individual solar panels, buying Delta is essentially buying grid resilience—it sits right at the intersection of green energy and AI.

Here are a few key investing principles to remember. First, avoid pure silicon wafer targets. Overcapacity in China still exists. If you’re going to buy, buy companies with a technological moat or specialized applications. Second, look at energy storage more than modules. If a company simply sells solar panels, it’s difficult to make money. Businesses that can provide solar plus energy storage solutions have a bigger opportunity. Third, pay attention to policy direction. 2026 coincides with election or policy review periods. You should stay alert to whether green energy subsidies in different countries change.

Overall, solar stocks are in a critical period transitioning from policy support to real market demand. If you’re pursuing stable dividends, U.S. NextEra Energy or Taiwan’s Delta Electronics are top picks. If you’re aiming for above-market returns, U.S. Enphase and Taiwan’s Eversun have more explosive potential. However, you still need to be careful about geopolitical risk and interest rate fluctuations—consider entering in batches rather than going all-in at once. Investing involves risk. Before placing orders, be sure to carefully assess your financial situation.