Solar stocks to buy are poised to take center stage as stakeholders recognize their immense potential in cutting harmful emissions.

In light of the recent U.N. report, the clock is ticking on our planet’s window of opportunity for a sustainable future. One of the critical pieces of the puzzle to reverse the effects of climate change is clean energy, specifically solar power.

The Inflation Reduction Act injected $10 billion in new energy tax credits, which points to solar stocks have become increasingly alluring for savvy investors. Experts expect that the worldwide solar market will expand by an impressive 7% annually until 2030.

Hence, it’s an ideal time to embrace solar stocks to buy on the surge in the green energy movement. Though solar stocks have experienced their fair share of boom and bust periods, patient investors are likely to gain immensely over the long run.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is the leading U.S.-based solar manufacturer, developing mostly utility-scale solar photovoltaics, effectively shielding it from changing consumer sentiment.

The firm is in position for massive growth, with plans to invest up to $1.2 billion in scaling photovoltaic (PV) solar module production. By 2025, First Solar plans to provide over 10 gigawatts of power, capable of servicing around 11 million homes.

2022 was a remarkable year for the company, boasting a 176% increase in net bookings (48.3GW) with a massive order backlog of 67.7GW. Logistical challenges led to a substantial drop in profitability, but with it posting a smaller-than-expected loss in its fourth quarter, it seems to be back on track.

With its competitive advantage in efficiency and an expanding global presence in utility-scale projects, it is poised to perform well over the long term.

Canadian Solar (CSIQ)

Canadian Solar (NASDAQ:CSIQ) is a global solar power leader, operating over 6.6 GW of solar capacity across more than 20 countries. With 800 MW of projects running and 5.3 GW under construction, it boasts a robust 18.5 GW project pipeline, positioning it for significant long-term growth in the renewable energy space.

It reported stellar fourth-quarter results, showing that it’s benefitting immensely from the proliferation of solar power. Specifically, its solar module shipments rose 68% year-over-year, with net income jumping more than 300% to $77.8 million.

Gross margins came in at a solid 17.7%, and its CEO, Shawn Qu, believes that gross margins could reach 20% to 30% in the mid-to-long term. As we advance, analysts at Seeking Alpha estimate its earnings per share (EPS) to soar over 48% from current levels in fiscal 2024.

In terms of valuation, CSIQ is mighty attractive, trading at just 0.3 times forward sales, roughly 90% lower than the sector median. It trades at a price/earnings ratio (Non-GAAP) of 11.6, almost 46% lower than its 5-year average, making it one of the best solar stocks to buy.

Maxeon Solar Technologies (MAXN)

Maxeon Solar Technologies (NASDAQ:MAXN) is a relatively new player in the solar sphere, after being spun-off from parent company SunPower Corporation in 2020.

The spin-off allowed SunPower to focus on distributed generation energy services while allowing Maxeon to focus on solar panel manufacturing. The two companies continue collaborating, extending an agreement to supply SunPower with Maxeon solar panels through 2025.

Maxeon is entering a new growth phase under the leadership of its new CEO, Bill Mulligan, an industry veteran with a proven track record. The firm is looking expand its manufacturing capabilities, strengthen sales channels, and diversify revenue sources beyond panel solutions. It plans to sell its own branded solar panels in the U.S. and abroad.

It recently delivered earnings which saw its fourth quarter sales reaching $323.5 million, a 45% increase from the same period last year. Its stock trades at just one times trailing-twelve-month sales.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines