Government incentives and tax rebates for installing solar panels and meeting net-zero carbon emission goals are expected to continue driving the solar industry’s growth. Therefore, Wall Street analysts are placing huge bets on fundamentally sound solar stocks. They expect the shares of quality players in this space, Sunrun (NASDAQ:RUN) and Beam Global (BEEM), to rally by more than 50% in price. So, read on.With the introduction of the federal solar investment tax credit (ITC), which provides a 26% tax credit for systems installed in 2020 - 2022, more homeowners have been encouraged to install solar panels. Although supply constraints in critical components, such as copper, semiconductors, and other metals, have affected installations, higher demand driven by the residential home renovation boom should keep prices high.
According to the U.S. Solar Market Insight report for the second quarter of 2021, the U.S. solar market exceeded 100 gigawatts of installed electric generating capacity, thereby doubling the industry’s size over the past 3.5 years. Moreover, the Biden administration’s net-zero carbon emission goals should bolster the industry’s growth further. The global solar energy market is projected to reach $223.3 billion by 2026, registering a 20.5% CAGR.
Thus, Wall Street analysts are hopeful about the upside potential of several fundamentally sound solar stocks. The consensus price targets for Sunrun Inc . (RUN) and Beam Global (BEEM) indicate a potential upside of more than 50% in the coming months.