Can you still buy the dip in solar stocks in 2025? A roundup of leading companies in the US and Taiwan stock markets

2024 is a “rollercoaster” for the solar sector—utility-scale solar maintains growth, but the residential market plummeted 32%, and the entire industry is shrouded in policy uncertainty. TAN (solar ETF) declined 37.62% for the year, with many star companies’ stock prices halved.

But crises often breed opportunities. As we enter 2025, with the global energy transition accelerating and countries continuously supporting green energy policies, is it time to revisit US-listed solar concept stocks?

Why the Solar Sector Deserves Attention

Global warming concerns are heating up, prompting governments worldwide to ramp up green energy investments. Compared to wind and other alternative energies, solar has natural advantages:

• Rich resource endowment—widely distributed sunlight resources, abundant naturally, suitable for most regions globally
• Low operation and maintenance costs—after installation, maintenance costs are low, and economic benefits are prominent over the entire lifecycle
• Rapid technological progress—photovoltaic cell efficiency has been steadily improving in recent years, costs decreasing year by year, applicable from residential rooftops to ultra-large power stations

However, challenges abound. Policy change risks, intensified industry competition, faster technological iterations, and other factors keep this sector highly volatile.

Major US-listed Solar Concept Stocks

First Solar (FSLR)

Founded in 1999 in Arizona, this company is a representative of thin-film photovoltaic technology in the US. Compared to traditional silicon modules, its thin-film technology has clear advantages in low-light and high-temperature environments, with larger module sizes and lower cost per watt, making it especially suitable for utility-scale projects.

The company has long-term supply contracts with multiple US power companies and benefits from the tax incentives of the Inflation Reduction Act (IRA) and policies supporting domestic manufacturing. Despite fluctuations in 2024, it still posted slight positive growth for the year, demonstrating resilience.

On average, 26 Wall Street analysts set a target price of $210.12, 26% above the current $166.35. In an optimistic scenario, if the Fed begins a rate-cut cycle and drives large project investments, 2026 EPS could rebound to $10, with a valuation of 25x PE suggesting a stock price of $250.

Nextracker (NXT)

This company is a global leader in smart tracking systems, adjusting the orientation of PV panels in real-time to maximize solar energy capture, significantly boosting power generation efficiency.

After an unexpectedly strong quarterly report in May, the stock rose 12% and remained high. The founder and CEO emphasized that the current strong performance lays a foundation for continued growth throughout the year, with key strategic investments also secured. The average target price from 18 analysts is $63.94, 12% above the current $56.92.

Enphase Energy (ENPH)

As a comprehensive residential energy solution provider, Enphase leads in microinverters and battery storage. However, it currently faces pressure from US-China tariffs—95% of its lithium iron phosphate batteries are sourced from China, which could squeeze gross margins by 200-600 basis points in 2025.

Good news is that supply chain diversification is underway, and by Q2 2026, most battery supplies are expected to come from non-China sources. While short-term pressure exists, the medium- and long-term logic remains clear. The average target price from 25 analysts is $50.82, 23% above the current $41.18.

Taiwan Stock Solar-Related Stocks

Delta Electronics (2308)

In 2024, revenue reached NT$421.1 billion, up 5% year-over-year; gross margin remains high at 32.4%; net profit after tax was NT$35.2 billion, EPS NT$13.56. All financial indicators show steady growth, with ROE at 16.4%.

Recently, Morgan Stanley raised its target price from NT$440 to NT$485, optimistic about its AI data center and industrial high-voltage DC power solutions. Analysts believe that with rising global demand for high-end power supplies, Delta’s growth momentum can continue until 2027.

ZTE Electric (1513)

In 2024, it turned profitable, with after-tax net profit of NT$3.623 billion, up 128% to a record high, and EPS NT$7.33, also a record. In Q1 2025, driven by Taiwan Power’s robust grid expansion plans, revenue hit NT$6.448 billion, a new high for the same period.

Six analysts revised the median target price from NT$182.5 to NT$195.5, a 7.12% increase, with a high estimate of NT$211 and a low of NT$167.

Chint-KY (5871)

With a market cap of NT$20.889 billion, Chint-KY’s current PE is only 9.11, and PB is 1.22, both below industry averages. Its dividend yield is 5.04%, outperforming the market. Recent insider buying also indicates management’s confidence in the outlook.

Other notable stocks

Historical Sector Logic

The solar industry has experienced multiple cycles. The 2008 financial crisis caused the first bubble burst; overcapacity in China in the 2010s triggered global price wars; after the pandemic in 2020, green energy policies reignited the industry.

Key observation: Policy support determines industry prosperity, not technological progress alone. When government subsidies are ample and tax incentives attract investment, the sector moves upward; once policies shift or uncertainties increase, stock prices immediately come under pressure.

The decline in 2024 reflects concerns over the sustainability of policies like IRA. But from the current direction of energy independence and climate commitments worldwide, the long-term framework of green energy support policies is unlikely to fundamentally change.

Risks Investors Should Know

• Policy risk: New government attitudes toward green energy directly impact subsidies
• Increased competition: Chinese PV companies still hold significant cost advantages
• Cyclical factors: Interest rates and economic health greatly influence consumer solar demand
• Technological iteration: Rapid updates in battery tech pose risks of asset obsolescence

Summary

The 2025 solar sector is not a simple “buy and profit” scenario; it requires a comprehensive assessment of policy support, company fundamentals, and valuation levels. US-listed solar stocks like First Solar and Nextracker have 10-26% upside targets in the short term; Taiwan stocks Delta and ZTE benefit from domestic orders and policy support. But this depends on confidence in policy continuity and accurate judgment of interest rate trends.

For investors with higher risk tolerance, now might be a good time to do some homework, but it’s definitely not a moment for blindly chasing highs.