2 Solar Stocks for the New Energy Boom
Everywhere I look, new housing developments are erected on any available land space.
Everywhere I drive, old roads are being demolished and rebuilt, while brand-new roadways are being developed to accommodate an influx of new residents.
Sometimes while driving around town, I think to myself: Is it me, or are there just more and more cars on the roads with each passing day?
The region I’m talking about is south Florida.
Being a curious researcher by nature, I took the time to crunch the daily population growth numbers for Florida using the latest census data.
Right now, 825 people are moving to Florida every single day.
And there are no signs this population boom is abating.
With this surge in population, housing is paramount. The number of new homes currently being built or on tap to be built is in the tens of thousands.
To have a functioning home, electricity is essential. So, in addition to new home construction here in south Florida, we’re also seeing newfangled structures cropping up near them:
The Solar Revolution Is Underway
A solar farm captures sunlight and converts it to electricity.
For six years running, solar has been “one of the top two sources of new electricity-generating capacity in the U.S.,” per the Solar Energy Industries Association (SEIA).
In 2018 alone, nearly 315,000 new residential solar systems were installed.
According to ReportBuyer, in the Americas alone, solar installed capacity is set to more than double by 2022, at a compound annual growth rate of 19.2%.
Check out this project location map from the SEIA.
This map shows major solar projects across the U.S.
The yellow circles denote operating solar farms. The orange and red circles show you solar farms in development and under construction right now.
As you can see, a boom’s underway.
A Leader in Solar Energy
One of the major players in this boom is NextEra Energy’s subsidiary, Florida Power & Light (FPL).
FPL is the largest energy company in the U.S., as measured by retail electricity produced and sold, and a leader in solar energy.
In January of this year, FPL announced a groundbreaking “30-by-30” plan to install more than 30 million solar panels by 2030. This endeavor will make Florida a world leader in solar energy.
Right in my own backyard, so to speak, FPL is constructing a solar farm that will power a brand-new housing development consisting of about 15,000 homes.
So, this solar farm revolution is real. It’s happening, and I can attest to it.
2 Promising Plays
There are two promising ways to profit from this revolution.
The first is the Invesco Solar ETF (NYSE: TAN).
This is an exchange-traded fund (ETF) that corresponds to the price and yield of the MAC Global Solar Energy Index.
Paul Mampilly first recommended TAN in November 2018. Since then the ETF has gained 35%.
The second promising play for this boom is NextEra Energy Inc. (NYSE: NEE).
Since 2014, NextEra’s stock has surged 134.9%.
The company is positioned to harness the potential gains in the solar industry just by location alone.
Florida is the Sunshine State, after all.
Until next time,
Director of Investment Research, Banyan Hill Publishing