Solar energy penny stocks provide investors with an exciting opportunity to get involved in the rapidly growing alternative energy industry. But which ones are worth buying? Take a look at our picks for the best solar penny stock companies to invest in for May 2022.
Best Solar Penny Stocks To Buy Now
Solar Integrated Roofing Corporation (OTCMKTS: SIRC)
Our first pick for best solar stocks under $5 is Solar Integrated Roofing Corporation, a California-based company that offers single-source solar power systems and installation services for commercial and residential properties.
One huge advantage over its competitors is the diversity of its products and services, including electric vehicles (EVs), a market segment that could be worth over $800 billion by 2027.
In particular, its EV subsidiary has been awarded a five-year, $5 billion contract from the US General Services Administration (GSA) to install charging stations.
The company also sells battery storage and backup, which has a projected value of at least $31 billion by 2029. Further, in 2021, the corporation grew its revenue by nearly 390% compared to 2020 and has maintained a market cap of $149.6 million.
A robust financial position and diverse set of products and services could point toward even more growth for the business, making it a penny stock worth considering.
Sunworks Solar Solutions (NASDAQ: SUNW)
One of the long-standing players in renewable energy is Sunworks Solar Solutions, a full-service solar provider for various industries, such as agriculture.
More farmers are using solar panels to control greenhouses, design more energy-efficient buildings, and power several operations.
Others are leasing their land to become solar farms, a market sector that could potentially achieve a compound annual growth rate (CAGR) of nearly 20% from 2020 to 2027.
While Sunworks is based in Utah, it continues to expand to other states, especially with the acquisition of a fast-growing residential solar company called Solcius.
Buying Solcius allows Sunworks to become one of the market leaders in 12 states, such as Colorado, New Mexico, Nevada, and Arizona.
And although the company has only $50 million in market capitalization, the purchase increased the combined net revenue in 2020 to $131.5 million.
Sunworks is a good option for a solar penny stock because of its potential to broaden its customer base and, therefore, increase its earnings in the next few years.
Orbital Energy Group (NASDAQ: OEG)
Orbital Energy Group is one of the few solar penny stocks publicly traded on major stock exchanges like NASDAQ.
Founded in 1998 in Texas, it began as a construction engineering company that eventually ventured into other massive industries, such as gas, green energy, and telecom.
The diversity of its portfolio has shielded it from potential risks in any one particular industry.
Its solar power subsidiary has also been doing well. In 2021, for example, the company entered into a joint venture with Jingolli Power, a New Jersey-based electricity construction provider.
The partnership provides Orbital Energy Group access to professionals and other resources that help it scale quickly.
Having a diversified portfolio and securing partnerships and projects are two tailwinds that make Orbital Energy Group a penny stock to watch out for.
Ready to build your portfolio? With Public.com you can follow other investors, discover companies that are inline with your beliefs, and invest into stocks and crypto with very little money! What are you waiting for? Check out Public Now!
Best Solar Energy Penny Stocks
Solar Alliance Energy Inc. (OTCMKTS: SAENF)
Solar Alliance is a Canadian solar company that offers renewable energy solutions for commercial and industrial facilities in South Carolina, Illinois, Tennessee, and Kentucky.
It is currently expanding its coverage and capacity, beginning with a 389-kilowatt 25-year New York project.
In Tennessee, it struck a deal to create and install 526 kilowatts of solar cells on the roof of AESSEAL, a business that manufactures and designs support and seal systems.
In October 2021, Alliance Energy launched the commercial version of a charging station for lawn mowers called the Powershed, increasing the power generated per unit by over 30%.
Innovation and expansion can go a long way in keeping this penny stock relevant in the coming years.
SunHydrogen Inc. (OTCMKTS: HYSR)
The California-based SunHydrogen Inc. has one of the most unique technologies among the companies listed here.
The business builds and sells a solar-powered nanotechnology system that promotes renewable hydrogen, removing hydrogen molecules from water.
This product could give SunHydrogen the chance to penetrate two fast-growing industries.
Besides alternative energy, it could take advantage of the popularity of nanotechnology, whose market size is expected to increase by over 35% from 2021 to 2030.
Currently, the business is scaling up the commercial fabrication of its hydrogen generators through partnerships with prestigious teams and the construction of a new research and development lab.
Coupling these developments with a market cap of $139 million, the SunHydrogen penny stock is definitely ready for growth.
Best Solar Power Penny Stocks
ReneSola (NYSE: SOL)
One of the solar penny stocks that could soon breach the $5 per-share price is ReneSola, a Connecticut company with diverse activities.
Through its many subsidiaries, it generates solar-related revenues, such as designing solar cells or modules, whose demand could grow 7% from 2021 to 2027. The company also installs solar technology in community gardens and sells project rights and electricity.
But perhaps the biggest flex of the business is penetrating the European market, where solar energy capacity could increase to over 300 megawatts in 2025.
ReneSola has already developed over 15 projects in the UK, including a 24-megawatt solar project for Innova.
Its varied sources of income and strong presence in Europe could make this one of the ideal solar penny stocks to have right now.
Principal Solar (OTCMKTS: PSWW)
Principal Solar doesn’t have the most impressive market cap, but it could still be a good penny stock based on its business model.
This Texas-based business is a strategic investor and buyer of companies designing and selling next-generation technologies, including renewable energy.
It also wants to focus on looking for more opportunities in the EV market this 2022. In addition, the company invests in undervalued petroleum-producing companies, such as those that drill and provide natural gas.
Although the demand for this non-renewable energy is declining, the International Energy Agency (IEA) still estimates it to grow by 1.5% each year until 2025.
Principal Solar penny stocks are, therefore, attractive because the company could generate huge gains from banking on natural gas and riding on the growth of alternative energy.
Should You Buy Solar Stocks?
Many financial experts believe there’s no better time to invest in alternative energy, including solar technology.
Allied Market Research estimates that the global market value for solar energy could reach over $220 billion by 2026, achieving a CAGR of over 20% in less than ten years.
The industry’s growth also cascades to popular solar components like batteries and solar panels, whose market size could expand by almost 4% from 2022 to 2028.
Other fundamental factors can also drive the popularity of alternative energy sources like solar power: the growing interest in climate change, disinterest in fossil fuels, continual decline of solar energy prices, and tax incentives.
Where to Buy Solar Penny Stocks
These online brokers do not charge commissions and do not ask for a minimum deposit.
You can also check out OTC brokers such as E*trade, Stockpile, and TD Ameritrade, as well as pink sheets.
Regardless of where you buy solar energy penny stocks, conduct due diligence by assessing the financial health of each stock.
Remember that these stocks are highly volatile and risky. Even the top solar penny stocks can have half their ups and downs.
Best Solar Penny Stocks: Final Words
There’s money in sunlight.
In the United States alone, the Energy Information Administration (EIA) forecasts that solar generation will account for 20% of the country’s electricity by 2050.
With this number, investing in solar penny stocks is a way to take advantage of the long-term upside potential.
Nevertheless, as with any other penny stock, research extensively and never invest more than you can afford to lose. This includes companies in the solar sector.
Solar Penny Stocks FAQs
Can You Get Rich Off Penny Stocks?
You could technically get rich trading solar penny stocks, but this is not a likely outcome. Most penny stocks are duds, so you’ll want to be extra cautious when investing in these solar companies.
Some of the best solar stocks on our list include ReneSola, SunHydrogen, and Orbital Energy Group. If you’re searching for penny stocks with potential, you might want to start here.
Is Solar Energy Stock a Good Investment?
Given a growing shift toward green energy, solar stocks could help investors capitalize on this emerging technology. As time goes on, the tech will likely improve and could see even more adoption.
What Penny Stocks Are on the Rise?
Some rapidly growing penny stocks are in in-demand industries, such as technology, healthcare, and green energy. Among solar penny stocks, options include SunHydrogen, Sunworks, Solar Integrated Roofing, Solar Alliance, and Principal Solar.