Berger addressed the speculation about future policy changes, particularly regarding the Inflation Reduction Act (IRA). He stated that the IRA is unlikely to change significantly, noting its success and the bipartisan support for domestic manufacturing, especially in the production of solar panels, batteries, inverters, and electric vehicles. He also stated that 85% of the plants that manufacture solar panels and batteries are located in Republican districts. Berger concluded by praising the IRA, particularly the tax credit for manufacturing (45X), which has played an instrumental role in growing and building domestic manufacturing plants in the U.S.

Despite the potential for federal policy changes, the solar industry will undoubtedly play an increasingly vital role in global energy systems.

To compile our list of the 10 best solar energy stocks to buy now, we used Finviz and Yahoo stock screeners, clean energy ETFs, and online rankings to compile an initial list of 25 solar energy stocks. Then we used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Number of Hedge Fund Investors: 59

First Solar, Inc. (NASDAQ:FSLR) is a leading manufacturer of thin-film solar modules, primarily used in utility-scale solar projects. The company’s advanced photovoltaic technology delivers high energy efficiency and durability. First Solar, Inc. (NASDAQ:FSLR) generates revenue from selling solar modules, developing solar power plants, and offering operations and maintenance services. The company’s customers include utility-scale project developers, power plant owners, and government organizations.

First Solar, Inc. (NASDAQ:FSLR) has made significant strides in expanding its manufacturing capacity and technological capabilities. The company recently inaugurated its new $1.1 billion Alabama facility, which will add 3.5 gigawatts of vertically integrated solar manufacturing capacity when fully scaled. Additionally, the company is on track to begin operations at its Louisiana facility in the second half of 2025, contributing to its goal of achieving over 14 gigawatts of annual U.S. nameplate capacity and over 25 gigawatts of global nameplate capacity by 2026.

Furthermore, First Solar, Inc. (NASDAQ:FSLR) continues to lead in the development of next-generation thin-film photovoltaic technologies. The company is launching CuRe production at its Ohio facility, with plans to produce and sell approximately 0.4 gigawatts of CuRe product by Q1 of 2025. The company is also advancing its perovskite technology through a new development line in Perrysburg, Ohio, which will simulate in-line manufacturing conditions and accelerate the development of this breakthrough technology.

Overall, FSLR ranks 3rd on our list of best solar energy stocks to buy now. While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.