Solar's Missing Piece
Noah Loffredo@loffredonoah
−6.7%
since Sep 30
The idea
I believe solar is on track to become the world's largest energy source, but the real value sits in what makes intermittent sunshine usable, not the panels themselves, which I've deliberately left out after years of overcapacity crushed their margins. So this basket owns the storage and inverter companies at its core, the battery supply chain beneath them, and large grid-equipment names as ballast, spread broadly since this is a decade-long buildout rather than a quick trade.
What it owns
- Solar plants need transmission lines, transformers, and grid connections to reach users, and these established companies supply the infrastructure for a decade-long expansion. · GE VernovaIt manufactures transformers and grid equipment facing genuine shortages as solar scales, giving it pricing power that panel makers lost., Quanta ServicesIt is the contractor that physically builds transmission lines and connects renewable plants to the grid, so solar expansion directly increases its work., Eaton CorporationIt supplies the electrical equipment that carries power from solar plants to users and provides steady revenue from grid and data-center electrification., NextrackerIt manufactures the trackers that tilt solar panels to follow the sun, extracting more power from each utility-scale plant without being commodity hardware., Hubbell IncorporatedIt manufactures connectors and components utilities buy in volume during every grid expansion, providing steady ballast through the buildout., First Trust NASDAQ Clean Edge Smart Grid ETFIt is an ETF covering smart-grid and electrical infrastructure companies that carry solar power, providing broad exposure without depending on any single equipment maker.30%
- Solar panels require inverters and power electronics to convert their output into usable electricity, so these companies serve every solar installation. · Enphase EnergyIt leads in microinverters that convert solar panels into usable power and is expanding its home battery line as solar installations grow., SolarEdge TechnologiesIt is the second-largest inverter maker and is recovering from a rough period, positioned to benefit from a decade of solar-driven demand., Generac HoldingsIt has transitioned from backup generators into home batteries and energy management, capturing residential demand for storage paired with solar., Shoals TechnologiesIt makes the wiring and electrical hardware that connects utility-scale solar plants, equipment every large project requires regardless of panel choice.25%
- Growing storage deployment requires lithium, battery cells, and materials from miners and suppliers, forming the foundation beneath the grid buildout. · AlbemarleIt is one of the largest lithium producers, and grid-scale batteries cannot be built without lithium to support a decade of storage growth., EnerSysIt is an established industrial battery maker expanding into grid storage, offering a stable way to own the battery supply layer alongside the buildout., Sociedad Quimica y Minera de ChileIt extracts lithium from Chilean brine at some of the lowest costs in the industry, staying profitable even when lithium prices weaken., Amplify Lithium & Battery Technology ETFIt is an ETF holding the broader battery supply chain across miners, materials, and makers, spreading the bet across the entire supply layer.20%
- Grid operators are deploying large-scale batteries to store solar power generated during the day and release it when the sun sets, making intermittent solar viable at grid scale. · Tesla, Inc.Its Megapack business is the largest utility-scale battery operation in the world, the core asset that makes solar's intermittency manageable at grid scale., Fluence EnergyIt sells and operates only grid-scale battery systems, making it the most direct play on storage becoming solar's value layer., Eos Energy EnterprisesIt manufactures zinc-based batteries designed for longer-duration storage than lithium typically handles, positioning it if long-duration storage wins utility adoption.19%
- Cash6%