With a major emphasis on green energy initiatives worldwide, the solar industry has gained increasing traction over the past decade. However, the industry has yet to address several issues to make solar energy a cost-effective alternative to non-renewable energy. Thus, we think it is wise to avoid the shares of fundamentally weak solar stocks Canadian Solar (NASDAQ:CSIQ), Beam Global (BEEM), and iSun (ISUN), which each suffered price declines last week. Read on.The solar industry has witnessed solid growth over the past decade, with a significant increase in the residential installation of solar panels and green energy initiatives across several sectors. However, the industry still faces severe challenges related to efficiency and reliability. For example, even with recent technological advances, the average solar panel is only 17% - 19% efficient. Also, the relatively high cost of solar power remains a major constraint for the industry’s growth.
Thus, solar companies need to address these issues to make their products more effective for users.
Given this backdrop, we think fundamentally weak solar stocks Canadian Solar Inc. (CSIQ), Beam Global (BEEM), and iSun, Inc. (ISUN), whose stock nose-dived in price last week, are best avoided now.