Last Updated on January 27, 2021 by Henry John
Early signs are strongly suggesting that the 2021 market will be a market like no other. So far, we’ve experienced a crazy rise in renewable energy stocks, the GME free money, and a Buffett Indicator at an all-time high.
Amidst the uncertainties surrounding the market, I find myself holding more cash than normal and investing in growth stocks with long-term potential while hedging with value stocks.
Solar energy stocks are one of those growth stocks with long-term potentials, and they are expected to perform exceptionally in 2021, especially with Joe Biden in the White House.
According to an industry forecast by Valuates Reports, ‘The global solar energy market was valued at $52.5 billion in 2018 and is projected to reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019 to 2026’.
Recently, it was reported that renewable energy overtook fossil fuels in the EU’s electricity mix in 2020, rising to 38% of overall generation as the share of fossil fuels declined 37%.
The global growth rate of the solar energy market in 2021 is expected to be huge. With the US rejoining the Paris Climate Change Agreement and the President planning to spend heavily on renewables, it’s evident that government policies and billions of dollars are going to flow into the renewable energy market, a space dominated by solar and wind energy.
Lately, some segment of the market, especially cheap small-cap stocks, have recently demonstrated investor behavior consistent with bubble-like sentiment. Many individual investors are jumping in on trades just because the story around the stock is good, ignoring important fundamentals.
I’ve watched some renewable energy penny stocks on this list go up over 100% MTD, and it’s crazy. Personally, I pulled back from such names, sit on the sideline and watch as things unfold to get a clear picture of how I will approach the volatility and enormous uncertainty in the space.
However, while I step aside a lot of traders are making loads of money trading these names. And solar energy penny stocks are some of the stocks doing really well in this crazy market.
If you’re interested in cheap solar energy stocks, here are 4 solar energy penny stocks under $5 and $10 to consider:
1. SPI Energy Co Ltd (NASDAQ: SPI)
SPI Energy Co., Ltd. provides photovoltaic solutions for business, residential, government, and utility customers and investors.
It offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies.
The company also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers. As of June 29, 2020, it owned and operated 16.8 megawatts of solar projects.
In addition, the company, through its wholly owned subsidiary, EdisonFuture, Inc., designs and develops electric vehicles and EV charging solutions. It operates in Greece, the United States, Italy, Japan, the United Kingdom, Australia, and Germany.
SPI Energy Co., Ltd. is headquartered in Shatin, Hong Kong.
2. SolarWorld AG (OTCMKTS: SRWRF)
SolarWorld Aktiengesellschaft manufactures and sells solar power products for on-grid and off-grid applications worldwide.
The company operates through Production Germany, Production U.S., and Trade segments.
It offers Sunmodule Plus, Sunmodule Bisun, and Sunmodule XL solar modules.
The company also provides SolarWorld Kits, which comprises components required for constructing and operating a solar power system; Sundeck, a roof-integrated solution suitable for rooftop covers and refurbishment projects; Sunfix Plus, a mounting system for pitched or flat roofs; and Sunfix aero and Sunfix Bisun flat roof mounting systems.
In addition, it offers Suntrol for system data monitoring; Suntool, a planning software for architects, fitters, planners, and wholesale traders; Sunplug eco, an inverter for domestic solar systems; KOSTAL inverters; and Sunpass, which provides planning, installation, and documentation of key data of solar array.
Further, the company distributes solar systems and modules, as well as sells wafers and cells. It offers solar energy solutions to home and business owners, and energy suppliers.
SolarWorld Aktiengesellschaft was founded in 1988 and is headquartered in Bonn, Germany.
3. Solar Integrated Roofing Corp. (OTCMKTS: SIRC)
Solar Integrated Roofing Corporation operates as an integrated solar and roofing installation company specializing in commercial and residential properties.
Its projects include Desert Willows, Hacienda Heights, LTV Plaza, the Vineyards, Tuscan Hills, Willowcrest Condos.
The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corporation in November 2015.
Solar Integrated Roofing Corporation was founded in 2007 and is based in Poway, California.
4. SunHydrogen (OTC: HYSR)
SunHydrogen, Inc. develops solar-powered nanoparticle systems that mimic photosynthesis to separate hydrogen from water.
It develops a novel solar-powered nanoparticle system that mimics photosynthesis to separate hydrogen from water. It also intends for technology of this system to be licensed for the production of renewable hydrogen to produce renewable electricity and hydrogen for fuel cells.
The company was formerly known as HyperSolar, Inc. and changed its name to SunHydrogen, Inc. in June 2020. SunHydrogen, Inc. was founded in 2009 and is based in Santa Barbara, California.