Despite federal investments, the growth projections for the solar industry have dampened analysts’ optimism, owing to supply chain constraints. So, we think solar stocks SolarEdge Technologies (NASDAQ:SEDG), First Solar (NASDAQ:FSLR), Sunrun (NASDAQ:RUN), and Array Technologies (ARRY) are best avoided now. Read on.The solar industry has faced significant supply chain obstructions on its growth path over the past year. Also, most solar projects scheduled for 2022 could either be delayed or canceled due to rising materials and shipping costs.
Furthermore, according to the Solar Energy Industries Association and Wood Mackenzie, the U.S. solar industry is estimated to grow 25% less in 2022 than the previous forecast. Michelle Davis, the principal analyst at Wood Mackenzie, stated, “The U.S. solar market has never experienced this many opposing dynamics.”
Therefore, we think fundamentally weak solar stocks SolarEdge Technologies, Inc. (SEDG), First Solar, Inc. (FSLR), Sunrun Inc . (RUN), and Array Technologies, Inc. (ARRY) are best avoided now.