5 US Clean Technology Stocks Favored by Bank of America

Investing.com—Bank of America has identified several standout stocks in the U.S. clean technology sector because solar power generation still maintains a cost advantage over traditional power generation methods, even without subsidies.

According to Rystad Energy research data cited by Bank of America, the cost of unsubsidized utility-scale solar is $50 to $70 per megawatt-hour, still lower than the $80 to $100 per megawatt-hour cost of new combined-cycle gas turbines.

This advantage stems from approximately a seven-year turbine delivery cycle and inflation in gas-side engineering, procurement, and construction costs.

Bank of America pointed out that tightening tax equity markets and rising geopolitical risks are widening the gap between top developers and smaller developers, with expected consolidation pressure over the next 18 to 24 months.

NextPower

Bank of America has set a target price of $121 for NextPower, reflecting a comprehensive valuation approach using enterprise value-to-EBITDA, discounted cash flow, and P/E methods.

Based on the company’s similar industrial business model and top-tier execution capabilities, the bank values it at four times the average of its solar peers.

Downside risks include poor execution in new verticals, adverse factors in the U.S. core utility-scale solar market, and increasingly severe supply chain inflation.

NextPower Inc. recently announced third-quarter 2026 earnings and revenue that exceeded analyst expectations.

First Solar

The bank’s target price of $257 is based on discounted cash flow and peer multiple valuation methods.

Bank of America valued the company’s 2032 45X tax credits using net present value, adding an incremental value of $96 per share. Downside risks include declining price environments, unfavorable trade policy developments, and potential cancellation of the 45X tax credits.

First Solar’s fourth-quarter earnings fell short of expectations, and its 2026 revenue guidance was below forecasts, leading Deutsche Bank and GLJ Research to downgrade their ratings.

Shoals Technologies Group

Bank of America set a target price of $11 based on a combined approach of enterprise value-to-EBITDA and discounted cash flow methods, each accounting for 50%. The bank values the company at a one-time discount compared to its peer group.

Downside risks include project delays amid uncertainties around the Inflation Reduction Act and increased competitive pressures.

Shoals Technologies Group Inc. reported fourth-quarter 2025 adjusted EBITDA that was 19% below market expectations. Several firms, including UBS and Jefferies, subsequently lowered their target prices due to margin pressures.

HASI (Hannon Armstrong Sustainable Infrastructure Capital)

The bank’s $42 target price uses a combination of dividend discount model, discounted cash flow, and P/E methods. Downside risks include lower-than-expected growth initiation and delays caused by trade policy changes.

HASI announced the issuance of new green bonds and the redemption of all $450 million of its 8.000% senior notes due 2027. After the company released its fourth-quarter 2025 results, UBS also raised its target price.

Clearway Energy

Bank of America reaffirmed its buy rating with a target price of $38, citing the company’s one of the clearest multi-year growth paths in the sector. The model is based on sponsor-supported asset injections and repowering plans increasingly relevant due to demand from hyperscale data centers.

Recently, Clearway Energy Inc. reported strong fourth-quarter 2025 financial results, with distributable cash exceeding guidance, prompting UBS and Royal Bank of Canada Capital Markets to raise their target prices.

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