Remember when everyone said solar was just a hippie pipe dream? Well, those hippies are laughing all the way to the bank right now. While Trump’s been busy rolling back green incentives and slapping tariffs on solar panels like they personally offended him, solar stocks are absolutely crushing it in 2025.
Here’s the plot twist nobody saw coming: despite all the political headwinds, solar companies are outperforming the S&P 500. We’re talking about some serious gains here – SolarEdge Technologies (SEDG) is up 86% year-to-date, which is the kind of performance that makes your crypto-bro cousin suddenly interested in “boring” energy stocks.
Nextracker (NXT) jumped 56%, SunRun (RUN) climbed 34%, and even the Invesco Solar ETF (TAN) is beating the broader market with an 11% return. Not every solar stock is partying – Enphase Energy took a 52% nosedive – but the overall trend is clear: the sun is shining on solar investors.
Goldman Sachs Says the Future’s Bright (Literally)
The smart money at Goldman Sachs just dropped a report that should make solar skeptics squirm. They’re projecting global solar installations will hit 914 Gigawatts by 2030 – that’s 57% higher than 2024 levels. To put that in perspective, solar generation has grown faster than any form of electricity in history. We’re talking about going from zero to hero in just over a decade.
“But wait,” you might ask, “didn’t Trump kill all the solar subsidies?” Here’s where it gets interesting. Most projects are protected by something called a “safe harbor provision” that lets them qualify for tax credits until 2026. It’s like having a golden ticket that works even when the political winds shift.
The Economics Are Getting Ridiculous
Here’s the kicker: solar panel costs have dropped faster than any investment good in modern history – and that includes computers and smartphones. Goldman estimates costs could fall another 20% as production scales up. When you combine economies of scale, manufacturing efficiencies, and falling interest rates, you get a perfect storm of profitability.
Plus, once you install solar panels, the marginal cost of producing electricity is basically zero. It’s like buying a money printer that runs on sunshine. Compare that to nuclear plants or coal facilities with their massive fixed costs and ongoing fuel expenses, and suddenly solar looks like the obvious choice.
The beauty of solar is its modularity – you can start small and scale up without building a massive power plant. It’s the difference between buying LEGO blocks and constructing the Death Star.
The Bottom Line
Despite the political drama and policy reversals, solar stocks are proving that good economics beat bad politics. Whether you pick individual winners like SolarEdge or play it safe with the Solar ETF, the trend is your friend here. Just remember to do your homework – not every solar stock is created equal, and this market can be as volatile as a summer thunderstorm.
The sun might set every day, but the solar investment opportunity is just getting started.