Top 5 FTSE solar energy stocks to buy

Highlights 

• The global solar PV market is expected to grow by 24 per cent on a CAGR basis between 2021 to 2027
• The growth is being driven by rising climate related concerns, government policies and other factors
• The UK has made addressing climate change a priority and is set to host the COP26 climate talks later this year

The UK has increasingly made renewable energy, sustainability and decarbonisation a key government focus as the threat from climate change becomes a nearing reality.

Moreover, UK’s commitment to leading the climate change challenge has solidified ahead of it hosting the UN’s COP26 climate talks in Glasgow later in the year.

As the UK and the rest of the world fight for a cleaner low carbon future, renewables such as solar and other alternative fuel types are projected to grow at a rapid pace.

A recently published report by research firm Research and Market indicates that the global solar panel industry is forecasted to grow at a rate of 24 per cent on a cumulative aggregate growth rate (CAGR) from 2021 to 2027.

The report suggests that increasing environmental concerns and new government policies regarding the safe disposal of solar panels will aid the growth in the sector.

As the demand for solar and other renewables heats up, let us take a look at the top 5 FTSE listed stocks in the solar energy sector, who are also holders of the Green Economy Mark issued by the LSE:

1. Verditek PLC (LON: VDTK)

FTSE AIM All-Share index constituent Verditek is a British solar energy company involved in the development and manufacturing of solar panels.

The company recently announced raising up to £353,253 in a green bond issue from crowdfunding platform Crowd for Angel. The green bond is a two-year term bond with a 7 per cent yield.

(Image Source: Refinitiv)

The company’s shares were trading at GBX 3.05 on 25 August at 08:21 AM GMT+1. Meanwhile, the FTSE AIM All-Share index was trading at 1,278.83, up by 0.51 per cent.

Verditek has a market cap of £10.41 million as of 25 August.

Related Article: How is the Solar Energy industry placed amid post pandemic recovery?

2. Good Energy Group PLC (LON:GOOD)

Another FTSE AIM All-Share index constituent Good Energy is a UK based company that generates and supplies green electricity and gas across the UK.

The company rejected another UK based green energy company Ecotricity’s latest hostile takeover offer of 340 pence per share due to the offer undervaluing the company. It also urged its shareholders to reject the offer by taking no action. Ecotricity’s already owns 25.1 per cent of the firm.

(Image Source: Refinitiv)

The company’s shares were trading flat at GBX 327 on 25 August at 08:12 AM GMT+1. Meanwhile, the energy sector index was trading at 5,115.45, up by 0.03 per cent.

Good Energy has a market cap of £54.42 million and a year to date return of 84.79 per cent as of 25 August.

3. Greencoat Renewables PLC (LON:GRP)

FTSE AIM 100 Index listed firm Greencoat is an Irish investment firm that invests across the solar, wind, and other renewable energy infrastructure.

The company recently announced its net asset value (NAV) per share at 101 cents per share as of 30 June. Also, its Q2 2021 dividends stand at EUR 11.2 million, which equates to a dividend per share of 1.515 cents per share.

(Image Source: Refinitiv)

The company’s shares were trading at EUR 1.18, up by 0.64 per cent on 25 August at 08:22 AM GMT+1. Meanwhile, the FTSE AIM 100 index was trading at 6,359.88, up by 0.33 per cent.

Greencoat has a market cap of £741.26 million as of 25 August.

4. SDIC Power Holdings (LON:SDIC)

FTSE IOB index listed firm SDIC is a Chinese electric services company that operates solar PV, wind, thermal and other power plants.

The company announced its 2020 annual profit distribution scheme from its recently held AGM, reporting a cash dividend of RMB 0.28 per share to shareholders.

(Image Source: Refinitiv)

The company’s shares were trading flat at USD 15.10 on 25 August at 08:29 AM GMT+1. Meanwhile, the FTSE IOB index was trading at 887.89, down by 0.14 per cent.

SDIC has a market cap of £7,664.85 million as of 25 August and its year to date return is at 20.80 per cent.

5. The Renewables Infrastructure Group (LON: TRIG)

FTSE 250 index listed firm The Renewables Infrastructure Group is a British investment trust which invests in renewable energy projects. The group is specifically focused on solar photovoltaic parks and onshore wind farms.

The company recently announced that its ordinary scrip share reference price under its Q2 interim divided alternative facility had been set at 132.28 pence per share.

If all eligible shareholders choose to opt for a scrip dividend alternative, about £26.87 million of scrip shares are expected to be issued. 

(Image Source: Refinitiv)

The company’s shares were trading at GBX 128.20, down by 0.93 per cent on 25 August at 08:42 AM GMT+1. Meanwhile, the FTSE 250 index was trading at 23,953.70, up by 0.28 per cent.

TRIG has a market cap of £2,721.81 million as of 25 August.

Related Article: 3 AIM renewable stocks to buy as the space hots up with new funding

Conclusion

As demand for renewables, especially solar, are set to rise sharply in the coming decade, solar stocks are expected to be an attractive investment in the coming years, depending on company performance and activity.