Favorable government policies and the increasing installations of solar power units in residential and industrial areas have been driving the solar industry’s growth. But although most solar companies can overcome current supply-chain challenges, some might struggle in the near term. So, Wall Street analysts recommend buying Sunnova Energy (NOVA) and FTC Solar (FTCI). But they fear SunPower Corporation (NASDAQ:SPWR) could witness a downtrend. Let’s discuss.The recent passage of a $1.75 trillion infrastructure bill, which offers significant funding and tax credits for the renewable energy and electric vehicle (EV) industries, should bode well for the solar industry. The growing demand for solar power units for household and industrial uses is expected to incentivize solar companies to develop efficient photovoltaic panels, energy storage solutions, and grid-tied systems. The global solar energy market is expected to grow at a 20% CAGR to reach $200 billion by 2026.
Although ongoing supply chain bottlenecks could affect the industry’s production in the near term, rising government support should help the industry keep growing. Investors’ interest in solar stocks is evident in the Invesco Solar Portfolio ETF’s (TAN) 14.3% returns over the past six months.
Given this backdrop, Wall Street analysts recommend buying Sunnova Energy International Inc . (NYSE:NOVA) and FTC Solar, Inc. (FTCI). However, they recommend that SunPower Corporation (SPWR) be avoided.