A lot can change in a decade. For example, ten years ago, it cost between $140 to $150 per megawatt-hour (MWh) for solar energy, and that’s with the benefit of investment tax credits. However, by 2020, that cost was down to $25 to $35 per MWh, making solar cheaper than fossil fuels. That downward trend in solar energy costs should continue over the next decade, as it’s on track to be the lowest cost form of bulk energy even after adding battery storage.
Solar energy capacity additions are also on track to accelerate over the coming years. The industry expects to install an average of 10 gigawatts (GW) of new capacity per year through 2022, which should rise to an average of 18 to 20 GW annually in the 2023 to 2030 timeframe.
This appears as if it will be a golden decade for solar energy. Three stocks poised to benefit from this mega-trend are Brookfield Renewable (NYSE: BEP) (NYSE: BEPC), First Solar (NASDAQ: FSLR), and NextEra Energy (NYSE: NEE). They’re great stocks to buy and hold until at least 2030.