Remote Solar, Global Reach
Swarnava | Longshot@swarnava
The idea
I believe electricity demand keeps climbing as life goes digital, and solar is the cheapest way to meet it. My bet is that remote solar farms in sunny, open land will power crowded cities that have no room for rooftops, with Asia leading the buildout. About a quarter sits in Asian solar makers and related funds, with the rest spread across farm owners, storage and power lines, and the hardware that builds the farms, plus a small cash buffer. I'm holding for years and would rethink it if solar costs stop falling or cities find other ways to power themselves.
What will be bought
- Asia manufactures most of the world's solar panels, and these makers sell heavily across the region as panels get cheaper and reach more households. · Canadian Solar Inc.It makes panels and builds farms and batteries, with projects across the Asia-Pacific region where the take expects growth in solar and storage., JinkoSolar Holding Co.It is one of the world's biggest panel makers with heavy sales across Asia, making it a direct way to own the idea that cheaper panels reach far more households., Daqo New Energy Corp.It makes polysilicon, the raw material inside every panel, so rising demand for cheaper solar lets it eventually sell above its production cost.25%
- Funds holding solar companies across multiple countries let the take own the industry's growth as more farms get built worldwide without betting on single makers. · Invesco Solar ETFIt holds solar companies from many countries, so this fund owns the whole industry growing as more farms get built worldwide rather than betting on one maker., KraneShares MSCI China Clean Technology ETFIt holds Chinese clean power companies listed only in Asian exchanges, giving access to makers in the region where the take expects huge solar farms and cheap panel sales., iShares Global Clean Energy ETFIt is a broad fund of clean power makers and farm owners across Asia, Europe and the Americas, steadier than single panel makers as solar and wind take a bigger share of new power.22%
- Companies that own and operate solar and wind farms on multiple continents sell their power on long contracts to large buyers, proving remote farms can pay off at scale. · Brookfield Renewable CorporationIt owns solar, wind and hydro farms on several continents including Asia and sells their power on long contracts to large buyers., NextEra EnergyIt is the largest builder of solar and wind farms in the US, proving that remote farms feeding cities can pay off at scale., Enlight Renewable EnergyIt builds solar farms paired with batteries in remote, sunny spots across Israel, Europe and the US, the exact shape of the take.16%
- Grid batteries keep solar power flowing after sunset, and new transmission lines carry electricity from remote farms into cities, completing the chain the take depends on. · GE VernovaIt makes transformers and grid equipment that connect new farms and handle rising electricity use, benefiting from orders growing faster than supply., Fluence EnergyIt builds grid batteries that keep solar power flowing after dark, with projects in Australia and Asia as well as the US, moving toward steady profits., Quanta ServicesIt builds the power lines and substations that carry electricity from remote farms into cities, the link the take depends on as power demand climbs.15%
- Sun-tracking mounts and wiring systems get purchased for every large farm regardless of panel maker, so suppliers earn more as farms grow larger. · Nextpower Inc.It makes sun-tracking mounts that help remote farms squeeze out more power throughout the day, with growing orders including outside the US., Shoals Technologies GroupIt makes wiring systems that connect thousands of panels on large farms, earning more as utility-scale builds grow larger., Array TechnologiesIt makes sun-tracking mounts like its rival and stays in the take while it holds its customers and keeps finances steady through industry downturns.12%
- Cash10%