Lately, people have been asking me whether they should still invest in U.S. solar stocks. My answer is: if you’re bullish on the long term, the timing is actually quite good right now.

There are a few changes in the energy market this year worth paying attention to. First, the power demand from AI data centers has truly exploded—giants like NVIDIA and Amazon are building data centers everywhere. A reliable, clean energy supply 24/7 has become a must-have, directly driving a surge in the solar-plus-storage market. Second, technology is upgrading: the old PERC cells have fallen behind, and high-efficiency technologies like TOPCon and HJT are now widely adopted across the board. With higher conversion efficiency, company profits have also been improving. On top of that, the U.S. IRA subsidy policy is entering its “harvesting” period this year, which is a tangible boost for the leading companies building factories in the U.S.

If you’re a short-term trader, you’ll need to keep an eye on policy direction and fluctuations in energy prices. After this year’s U.S. election, policy adjustments are underway, AI infrastructure is at its peak, and positive year-over-year changes in monthly revenue are often a signal to enter. My own approach is to look at revenue guidance during earnings season, and wait to buy after technical indicators break above a downward trendline. That typically helps you catch a good trading range.

When it comes to choosing U.S. solar stocks, I’m watching three names in particular. First Solar is my top pick. It uses thin-film technology rather than silicon wafers, and its performance in high-temperature power generation is especially strong. This year, its new plant in South Carolina has begun ramping up, and order visibility even extends to 2030. Its cash flow is extremely stable, making it suitable for people seeking steady growth. Enphase Energy is another approach: it focuses specifically on the residential rooftop market. Microinverters allow each solar panel to operate independently. Plus, this year it successfully transitioned into a home energy management platform, and its energy storage systems are also selling well—making it especially attractive in an environment where electricity prices are soaring. If you’re worried that competition in manufacturing is too intense, NextEra Energy is a good defensive choice. It’s the world’s largest renewable energy operator, earns money from electricity charges, and has raised its dividends for more than 30 years—making it suitable for investors who want income.

On the Taiwan market side, the U.S. solar stock concept is also worth watching. Eversun not only makes modules; it is also a supplier of solar panels for SpaceX. With a big increase in Starlink satellite launches, profits have been helped by margin optimization. In addition, Taiwan has a policy requiring buildings to install solar panels, so as a local leader, it benefits most directly. United Renewable Energy is in its harvest year after debt reduction and technological optimization, with its gross margin jumping from single digits to double digits—its starting valuation base is relatively attractive. Delta Electronics, although categorized in electronic components, holds an absolute leading position in inverters and energy management systems in the solar space. Buying it is like buying “grid resilience.”

My takeaway from investing in solar stocks is this: never touch pure silicon wafer companies. China’s overcapacity problem is still there. If you buy, buy companies with technological moats or those with special applications. Second, energy storage is far more important than modules. Companies that can provide an integrated solar-plus-storage overall solution are the true profit winners. Finally, be sure to watch policy direction. During election periods and policy review cycles this year, green energy subsidies in various countries may change.

To sum it up, this year’s U.S. solar stocks are shifting from policy support toward market-driven demand—this is a key moment. Conservative investors can look at NextEra or Delta Electronics. If you want to go after above-average returns, Enphase and Eversun have more potential for a breakout. But I still want to remind you: geopolitical risks and interest-rate fluctuation risks are not small, so it’s best to enter in batches rather than going all-in at once. Everyone’s financial situation is different, so you should assess carefully before placing an order.