With the transition to a zero carbon society in the near future, there is huge growth potential for the renewable energy industry. The rising demand for renewable energy should be a boon to two Chinese companies, JinkoSolar (NYSE;) and Daqo New Energy. What stock do you think is the best buy? Find out more. Daqo New Energy Corp., in Chongqing (China), develops and sells photovoltaic material. This ready-to-use, pre-packaged polysilicon is available for use in solidification, pulling and crucible stacking applications. JinkoSolar Holding Co., Ltd., based in Shangrao, China, is an alternative. It designs, develops, produces, markets, and sells photovoltaic products. This company sells solar modules, silicon wafers as well solar cells and recovered silicon materials.

The increasing frequency of droughts, a record number of wildfires, and floods have led governments worldwide to take aggressive steps to transition their countries to renewable-energy-based societies. Although producing renewable energy is expensive, the cost of solar and wind power has fallen significantly over recent years. Furthermore, China has emerged as a global leader in renewable energy and is currently the world’s most significant wind and solar power producer and the largest domestic and outbound investor in renewable energy. According to a Facts & Factors report, the global renewable energy market is expected to grow at an 8%-plus CAGR between 2021 – 2026. Both JKS and DQ should be able to benefit.

JKS’ shares have gained 26% in price over the past three months, while DQ has returned 6.5%. However, DQ’s 1.1% gains year-to-date are higher than JKS’ negative returns. Furthermore, DQ is the clear winner with 28.2% gains versus JKS’ negative returns regarding their past year’s performance.

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