The efforts of governments worldwide to reduce carbon emissions, and significant investments in the renewable energy industry, should drive the solar industry’s growth. Despite the fact that major solar companies are capable of overcoming the supply chain challenges, the fundamentally weak stocks Sunrun (NASDAQ) and Sunnova Energy(NOVA), Sunworks [NASDAQ]), as well as Solar Integrated Roofing (“SIRC”) could see a decline in near-term. We recommend that you avoid these stocks. Keep reading. Government efforts around the world to attain carbon-neutrality are increasing, as well as rising oil prices. A $1.75 trillion bill was passed recently, providing significant tax credits and funding for renewable energy. Global solar energy markets are expected to expand at 20% to $200 billion in 2026.

Although ongoing supply chain bottlenecks could affect the industry’s production slightly in the near term, rising government support should help the industry grow significantly in the long run. Investor interest in solar stocks is evident in the Invesco Solar Portfolio ETF’s (TAN) 5.7% returns over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.3% gains.

Solar stocks are however available Sunrun Inc . (RUN), Sunnova Energy International Inc . Sunworks, Inc., Solar Integrated Roofing Corporation, and Sunworks, Inc. (NYSE) will continue to face pressure from weak fundamentals as well as overvaluations in the short term. They should therefore be avoided.

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