The top solar stocks in the US with strong FII backing are gaining attention in 2025—and for good reason. As global focus sharpens on clean energy and decarbonization, foreign institutional investors (FIIs) are doubling down on solar energy leaders in America. This guide breaks down which U.S. solar stocks are shining the brightest, how FIIs are driving their growth, and what it means for retail and professional investors alike.
With the Inflation Reduction Act continuing to inject billions into clean tech and rising tariffs on Chinese imports reshaping supply chains, U.S.-based solar firms are back in the global spotlight. Add to that the surge in international capital chasing ESG-aligned companies, and you’ve got a recipe for explosive solar stock potential.
Why FIIs Are Backing U.S. Solar Stocks
Foreign Institutional Investors (FIIs)—such as sovereign wealth funds, pension funds, and global asset managers—are increasingly looking for climate-resilient, politically stable, and innovation-driven sectors. U.S. solar stocks check all the boxes in 2025:
- Regulatory tailwinds from the Inflation Reduction Act (IRA) offer up to $370 billion in clean energy incentives.
- Trade policy advantages favor American manufacturers with tariffs on Chinese imports.
- Rising global demand for energy storage and decentralized solar infrastructure.
According to a recent BloombergNEF report, global clean energy investment surpassed $1.8 trillion in 2024, with nearly 20% of that targeting U.S. renewables—much of it coming from foreign investors seeking long-term green assets.
Top U.S. Solar Stocks with Strong FII Interest
1. First Solar (NASDAQ: FSLR)
What they do: First Solar leads the U.S. solar manufacturing sector with its cadmium telluride thin-film modules. These are cheaper and more efficient in hot climates than traditional silicon panels.
Why FIIs love it:
- Manufacturing is U.S.-based—perfectly positioned to benefit from Biden-era solar policies.
- Signed major supply deals with utilities and global developers through 2028.
- Massive expansion plans with new factories in Alabama and India.
Performance in 2025:
- Stock Price (May 2025): $167.22
- YTD Growth: Over 40%
- Institutional holdings: ~80%, including BlackRock, Vanguard, and overseas ESG funds.
2. Enphase Energy (NASDAQ: ENPH)
What they do: Enphase makes microinverters, energy storage batteries, and monitoring software—components essential to residential and commercial solar.
Why FIIs love it:
- High-margin tech business, not just commodity solar.
- Aggressively expanding U.S. production to sidestep tariffs.
- Leading brand in solar home solutions, especially in Europe and the U.S.
Performance in 2025:
- Stock Price: $49.04
- Trading volume rising post-Q1 results
- International funds favor Enphase for its smart-grid compatibility and future-ready offerings.
3. SolarEdge Technologies (NASDAQ: SEDG)
What they do: Best known for inverters and power optimizers that enhance solar panel performance.
Why FIIs love it:
- Massive European and Israeli investor base.
- Works closely with battery storage and EV charger solutions.
- Despite recent price dips, it has solid fundamentals and is expected to rebound.
Performance in 2025:
- Stock Price: $20.65
- Global diversification is a plus for FII diversification strategies.
4. Sunrun Inc. (NASDAQ: RUN)
What they do: Sunrun is the U.S. leader in residential solar leasing and solar-as-a-service platforms.
Why FIIs are warming up:
- Innovative financing model (no upfront cost for customers).
- Potentially huge market in suburban and low-income homes.
- Gained traction with ESG and impact investors.
Performance in 2025:
- Stock Price: $11.54
- Market share leader in California and expanding in Texas, Arizona.
5. Complete Solaria (Formerly SunPower – NASDAQ: SPWR)
What they do: Focused on premium residential solar solutions and panel design.
Why FIIs might consider:
- Undergoing restructuring after SunPower rebrand.
- Smaller cap, but interesting for high-risk, high-return plays.
- New leadership focusing on direct-to-home sales and streamlined operations.
Performance in 2025:
- Stock Price: $1.76
- Still volatile, but may attract speculative institutional capital.
How to Choose a Solar Stock Backed by FIIs
When selecting solar stocks, here’s what to look for:
1. Institutional Ownership Percentage
- High FII ownership generally signals confidence.
- Look at holdings from global names like Fidelity, SoftBank, or Temasek.
2. Alignment with Government Policy
- The more a company benefits from tax credits or tariffs, the more stable its revenue base.
3. Tech Innovation
- Microinverters (like Enphase), optimization tools (SolarEdge), and advanced battery systems matter more than panel size.
4. Diversification
- Companies operating in both U.S. and global markets reduce geopolitical risk.
How FIIs Influence the Solar Sector
FIIs do more than just provide money. They:
- Encourage governance reforms.
- Push for transparent ESG reporting.
- Attract media coverage, which improves stock liquidity and valuation.
As of Q2 2025, over $100 billion in international funds has flowed into the U.S. renewable sector, per IEEFA and Morningstar.
Get Paid to Go Solar? Here’s What the US Government Is Offering in Solar Panel Incentives
Can Sunrun Weather the Policy Storm? Analysts Weigh Potential Solar ITC Cuts
NTPC Green Energy Shares Decline Over 1 Percent: Key Factors Behind the Drop
(FAQs)
Q1: Why are solar stocks rising in 2025?
A: Global demand for clean energy, supportive U.S. legislation, and supply-chain advantages have fueled their growth. International investors are also pushing capital into ESG-compliant stocks like solar.
Q2: What’s FII and how does it affect stock price?
A: FII stands for Foreign Institutional Investor. When big overseas investors buy shares, it increases demand and confidence in the stock—often leading to a price surge.
Q3: Is now a good time to invest in U.S. solar stocks?
A: For long-term investors, yes. Volatility exists, but fundamentals and policy support make it a promising sector. Always assess your risk tolerance.
Q4: Which is safer—First Solar or Sunrun?
A: First Solar is more stable and manufacturing-focused; Sunrun is more consumer-facing and growth-oriented. Choose based on your investment style.
Q5: How can I track FII activity in solar stocks?
A: Use platforms like Nasdaq Institutional Holdings or Morningstar to view real-time investor data.
