When you put your money into an investment, it’s obvious you want to see a return. And while some believe solar stocks are the right move, evidence proves you may want to hold off for a while.
Solar stocks have fallen into a downward trend, trapping many solar panel companies in a vortex of weak margins and low profitability.
Solar stocks continue to drop
The price of solar panels continues to decline year by year. When compared to 1980, prices have fallen by more than 99%. This is likely due to the fact that solar panels have become commoditized due to their sharp increase in recent popularity.
2019 has seen prices as low as $0.30 per watt though this price point is contingent on the panel. Two companies in particular, JinkoSolar and Canadian Solar, have seen their stock drop significantly in 2019.
Canadian Solar makes only $0.33 per watt in revenue, and while the cents can undoubtedly add up over time, it doesn’t take an expert to see margins are meager.
Some businesses will still benefit from the dropping prices
From the perspective of JinkoSolar and Canadian Solar, 2019 has been a bleak year. However, that isn’t the case for everyone in the solar industry. Sunrun and Vivint Solar are solar panel installers who specialize in buying and installing commodity solar panels.
