California is losing its solar corona: who is America’s new energy star? – Enphase Energy (NASDAQ:ENPH), Canadian Solar (NASDAQ:CSIQ)

California is the largest US state by population and was once the largest producer of solar energy in the US. As a result of the large quakes, Texas overtook California as the nation’s largest producer of solar energy.

Data: An article published in the Financial Times described how Texas, with its own power grid, has become a “model” for adopting green energy.

Over the past five years, Texas’ solar grid has grown exponentially. In 2019, Texas had just over 2 gigawatts of solar power plants compared to 13 in California. In 2024, Texas had 23.6 gigawatts compared to California’s 21.2. The FT obtained the data from Grid Status.

Texas generated more energy from solar than coal for the first time in March, according to data from the think tank Ember.

Why is it important: Texas has consistently voted for a Republican state legislative majority that has historically been unlikely to support green energy. The fact that Texas has overtaken the Democratic stronghold of California may indicate that the use of solar energy has become less politicized.

The state has also seen an increase in solar energy production. Enphase Energy Inc (NASDAQ:ENPH) manufactures solar inverters in Arlington The Canadian company Solar Inc (NASDAQ:CSIQ) manufactures panels in Mesquite. Several other manufacturers have announced plans to produce parts in Texas.

The state attracted attention as a newfound leader in green energy when Elon Musk moved Tesla company (NASDAQ:TSLA) headquarters from California to Austin. Musk reportedly wants the roof of his Gigafactory in Texas to be covered with solar panels.

Investors interested in the solar energy sector have three ETFs to consider:

1. Invesco Solar ETF (NYSE:TAN): Specializes in solar energy stocks
2. iShares Global Clean Energy ETF (NASDAQ:ICLN): Covers a wide range of clean energy sources, including solar energy
3. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN): Includes various renewable energy companies that are making significant investments in solar energy​

Also Read: Solar Energy Leaves the Wind in the Dust as Global Renewable Energy Hits New Highs

Image generated using artificial intelligence via Midjourney.