Why Solar Energy Stocks Are Hot Again

Solar energy stocks have had an outstanding run in 2020, which may come as a surprise to investors, given the pandemic and all of the disruptions that have come with it. Enphase Energy (NASDAQ: ENPH), SolarEdge Technologies (NASDAQ: SEDG), SunPower (NASDAQ: SPWR), and Sunrun (NASDAQ: RUN) have led the charge and have all more than doubled, while JinkoSolar Holding (NYSE: JKS), Canadian Solar (NASDAQ: CSIQ), and First Solar (NASDAQ: FSLR) have all beaten the market.

Solar companies haven't had a tremendous growth year by most measures, but they've outperformed expectations, and investors have a very bullish eye on the future of the industry. As 2020 comes to a close, it's worth looking at how we got here and what 2021 has in store.