Recently, someone asked me whether solar stocks are still worth laying out. My view is: if you believe in the long-term energy transition, now is actually just getting started.

Look closely at how things have changed over the past few years. AI data centers are driving an explosive surge in electricity demand. Giants like NVIDIA and Amazon are building data centers everywhere—each data center needs a stable supply of green power 24/7. At the same time, governments around the world are taking an increasingly hardline stance on net-zero carbon emissions, which directly drives a huge jump in demand for solar power plus energy storage.

The technology landscape is also undergoing a generational shift. Traditional PERC cells are gradually being phased out, while high-efficiency technologies like TOPCon and HJT are being adopted across the board. With higher conversion efficiency comes stronger profitability for companies. On top of that, the subsidy effects from the U.S. “Inflation Reduction Act” are entering a harvest period this year, which is a tangible positive for leading companies with manufacturing facilities in the U.S.

On the U.S. stock market, I focus on three names. First Solar is the absolute king in the thin-film battery field. It doesn’t use silicon wafers; instead, it relies on proprietary thin-film technology. Its power generation performance at high temperatures is especially strong, making it particularly suitable for large-scale power plants. This year, its new factory in South Carolina has begun ramping up production. Order visibility can even extend to 2030, and its cash flow is also very stable. If you want steady growth, this is a top utility-grade pick.

Enphase Energy is taking a different route. It specializes in microinverters for the residential rooftop market, enabling each solar panel to operate independently—delivering higher power generation efficiency than traditional string inverters. The company has already transformed into a home energy management platform, and it has also done well with battery energy storage systems. In an era of skyrocketing electricity prices, it benefits most directly.

NextEra Energy is the world’s largest renewable energy operator, and it earns by collecting electricity bills. As the preferred partner for AI data centers looking for green power, its hallmark is stable dividend payments. Its dividend has increased for more than 30 years in a row, and high-dividend yield stocks like this are especially attractive during a rate-cutting cycle.

The situation in Taiwan’s stock market is a bit different. Eversolar (Yuanjing) not only makes modules; what’s most promising now is the theme of low-earth orbit satellites and AI power. It is a supplier of solar panels for SpaceX. As Starlink launch volumes increase significantly, its profit structure has been clearly optimized. Plus, Taiwan’s policy requiring the installation of solar panels on buildings is now in effect—positioning it as the local market leader by market share, it benefits most directly.

United Renewable Energy is in its harvest year after completing debt reduction and technological optimization. After fully moving into high-efficiency TOPCon production lines, its gross margin jumped from single digits to double digits. The base is relatively attractive, making it well suited for investors who like turnaround plays.

Although Delta Electronics is classified as an electronic components company, in the solar sector it holds an absolute position in inverters and energy management systems. Buying it is essentially buying grid resilience—the intersection of green energy and AI.

My own take on trading solar stocks boils down to three points. First, avoid pure-silicon wafer plays. The issue of excess capacity in China is still there, so if you’re buying, buy companies with a technological moat or special applications. Second, energy storage is far more important than modules. It’s hard to make big money just by selling solar panels; companies that provide complete solution packages have a bigger opportunity. Third, you must keep a close watch on the policy direction. This year is an election and policy review period, so you should stay alert to changes in green energy subsidies across countries.

In the end, solar stocks are currently in a critical period shifting from policy support to genuine market demand. If you want stable dividend payouts, NextEra or Delta are the first choices. If you want to chase higher returns, Enphase and Eversolar have stronger breakout potential. That said, it’s still worth reminding you that geopolitical risk and interest-rate fluctuations cannot be ignored. It’s recommended to enter in batches rather than going all-in at once. Everyone’s risk tolerance is different, so before placing an order, you should carefully evaluate based on your own financial situation.