There's no doubt that the future of energy is heading towards renewable sources. Solar, in particular, has become much more cost-effective in recent years. In fact, solar energy is actually cheaper than fossil fuels. Electricity from fossil fuels costs between 5 cents and 17 cents per kilowatt-hour whereas solar energy costs average between 3 cents and 6 cents per kilowatt-hour and are trending down.
The only downside is that solar power has higher upfront costs, although the price of solar panels has decreased by more than 20% in the last 5 years and 70% in the last decade.
As a result, it makes sense that some investors want to try and profit from this new shift especially since we are still in the early days. However, not all solar companies are equal and not all will enjoy the same level of success. That is why Enphase Energy, Inc. (ENPH), would be our top pick if we were to bet on solar.
Here are the main points of this report:
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