We recently published a list of 10 Best Solar Stocks to Buy in 2025. In this article, we are going to take a look at where Clearway Energy Inc. (NYSE:CWEN) stands against other best solar stocks to buy in 2025.
Solar energy has become a key driver in the global shift toward sustainable power. It plays a crucial role in reducing greenhouse gas emissions, enhancing energy security, and fostering economic growth. By harnessing solar power, nations can reduce their reliance on fossil fuels, lowering their exposure to volatile energy markets. Moreover, with its low carbon footprint, solar energy is also a key solution for fighting climate change.
According to the International Energy Agency (IEA), declining costs have led to a surge in solar photovoltaic (PV) adoption. Over the past five years, global solar capacity has tripled. Between 2024 and 2030, solar PV is projected to drive 80% of the world’s renewable energy expansion, driven by large-scale solar farms and increased rooftop installations. By the end of the decade, solar is expected to surpass wind and hydropower as the dominant renewable energy source.
Solar Market Trends and Challenges
Wood Mackenzie’s 2025 solar market report, Solar: predictions for 2025, highlights that global installed capacity reached 495 GW in 2024, marking a 14% increase from the previous year. The rising demand for electricity, fuelled by data centers and electrification trends, continues to support this expansion. However, political shifts following the 2024 elections could introduce policy uncertainties, affecting renewable energy incentives. In mature markets, the reduction of financial support, such as feed-in tariffs and capital expenditure rebates, may slow growth after years of rapid acceleration.
Despite concerns over market saturation, a shift is taking place in 2025. Overcapacity in solar module manufacturing has led top producers to limit supply, with major polysilicon manufacturers reducing production and module makers setting price floors. This suggests the market could shift back in favor of suppliers.
Looking beyond short-term fluctuations, Deloitte’s 2025 Renewable Energy Industry Outlook expresses confidence in solar’s long-term trajectory. Their research found that solar was the only major energy source to record significant capacity growth, surging 88% to 18.6 GW. By the end of 2024, solar overtook hydropower and nuclear to become the fourth-largest source of installed capacity, trailing only wind, natural gas, and coal. The US Energy Information Administration (EIA) also projects record-breaking additions in 2024, with solar capacity expected to grow by 38.4 GW, far exceeding the 6.5 GW increase expected for wind power.
In summary, solar energy has become a key part of the global shift toward cleaner power. Its fast growth is fuelled by new technology, lower costs, and supportive policies. However, future progress will depend on addressing policy uncertainties and infrastructure challenges. With ongoing innovation and strong government support, solar energy is set to remain a major player in the clean energy transition. Keeping this in mind, let’s explore our top picks for the best solar stocks to buy in 2025.
Our Methodology
To identify the stocks, we began by compiling a list of solar companies with a market capitalization of at least $500 million. This was done using online stock screeners, solar-focused ETFs, and financial media reports. Next, we filtered the list to include only those stocks with an upside potential of at least 10%. From this refined selection, we identified the top 10 stocks with the highest hedge fund ownership, leveraging data from Insider Monkey’s Q4 2024 hedge fund database. Finally, we ranked these stocks in ascending order based on the number of hedge funds holding positions in them.
Note: All pricing data is as of market close on March 20.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Clearway Energy Inc. (CWEN) the Best Solar Stock to Buy in 2025?
A wind farm in motion, its many turbines spinning in the breeze.
Clearway Energy Inc. (NYSE:CWEN) is a leading renewable energy company focused on owning and operating a diversified portfolio of clean energy assets. The company primarily generates electricity from renewable sources, including wind and solar, while also maintaining a portfolio of natural gas-fired plants.
In FY 2024, Clearway Energy Inc. (NYSE:CWEN) posted an adjusted EBITDA of $1.15 billion and cash available for distribution (CAFD) of $425 million, exceeding its $395 million guidance. The company is actively developing 5 GW of projects to meet the rising energy demands of data centers, a key growth driver. Management remains confident in achieving its 2027 CAFD per share target of $2.40 to $2.60 and remains committed to long-term financial objectives beyond 2027, reinforcing a strong outlook for sustained growth.
In a report released on February 25, BofA Securities analyst Dimple Gosai maintained a Buy rating on Clearway Energy. Notably, in November, BofA Securities had initiated coverage on Clearway Energy Inc. (NYSE:CWEN) with a Buy rating and a $33 price target. In that report, BofA analysts had highlighted the company benefiting from its sponsor, Clearway Energy Group (CEG), which holds a 41.8% economic interest and has a 30GW project pipeline. This partnership enables a steady flow of project acquisitions, reducing risk and adding stability. The analysts estimated that just 3-4% of CEG’s pipeline needs to be operational annually to sustain growth, providing strong visibility into future expansion and strengthening Clearway Energy Inc. (NYSE:CWEN)’s strategic advantage amid sector volatility.
Overall, CWEN ranks 5th on our list of best solar stocks to buy in 2025. While we acknowledge the potential of CWEN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CWEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
