Solar stocks took a massive hit on higher interest rates. But many are showing big signs of life again, creating an opportunity for some of the best solar stocks to buy in April. 

Helping, Nextracker CEO Dan Shugar said “solar is unstoppable” and is set to double every two to three years against an “unprecedented period of demand growth,” as quoted by CNBC. Even better, his company just raised its revenue forecast for 2024 to a new range of $2.43 billion to $2.48 billion from a prior range of $2.3 billion to $2.4 billion. 

Plus, when and if the Federal Reserve gets back to cutting interest rates, solar stocks could soar. That’s because lower rates will have a significant impact on volume and margins. When interest rates get too high, as they recently have, financing gets more expensive and margins suffer, as we’ve seen, unless they can raise prices on consumers.

Again, once the Fed cuts rates, solar should come back strong. In addition, according to the U.S. Energy Information Administration, “We expect solar electric generation will be the leading source of growth in the U.S. electric power sector.”

That being said, investors may want to jump back into solar stocks, including:

First Solar (FSLR)

I’d wait for a pullback in First Solar (NASDAQ:FSLR) before buying. 

Over the last few days, shares of First Solar ran from about $146 to a recent high of $173.02. Unfortunately, it’s starting to pivot lower after failing at overhead resistance again. In fact, if you pull up a two-year chart of FSLR, you can see it’s been trading sideways, bouncing between $130 support and $170 resistance, since late last year.

Helping, company earnings have been solid. In its most recent quarter, the company said fourth quarter earnings swung to a profit of $349 million, or $3.25 a share from a loss of $7.5 million, or seven cents a share year over year. Net sales were by $400 million to $1.2 billion.

It also issued 2024 earnings guidance of $13 to $14 a share on revenues of $4.4 billion to $4.6 billion. That’s above analyst expectations for $13.26 on revenues of $4.56 billion.

Sunrun (RUN)

Investors may also want to consider Sunrun (NASDAQ:RUN).

Over the last few days, the stock ran from a low of about $9.37 to a recent high of $13.59. Now at $12.41, I’d use weakness as an opportunity. 

Analysts at Jefferies say RUN could double as the company shifts to solar energy storage. In fact, the firm has a buy rating on RUN, with a price target of $31. 

They note the company “is the leading clean energy provider with a 60% residential market share for new subscriptions,” as noted by CNBC. “Sunrun’s transition from a solar only company to one that also provides battery storage should act as a catalyst that will increase the net value of its subscribers.”

RBC Capital has a price target of $15 on RUN, with an outperform rating. 

“RBC Capital anticipates that Sunrun will present evidence of its robust asset value in the near future. The firm is expected to start generating significant cash flow, amounting to $200-$500 million by the end of 2024, which RBC believes will demonstrate the company’s underlying asset value to investors,” as quoted by Investing.com.

Invesco Solar ETF (TAN)

Or, if you want to diversify with 48 solar stocks at a low cost of $43.88 a share, there’s the Invesco Solar ETF(NYSEARCA:TAN). With an expense ratio of 0.68%, the TAN ETF invests in some of the top solar names, including First Solar, Enphase Energy (NASDAQ:ENPH), SolarEdge (NASDAQ:SEDG), Canadian Solar(NASDAQ:CSIQ), and Sunnova Energy (NYSE:NOVA) to name a few.

After dropping from about $75 to a recent low of $43.88, the TAN ETF has been trading sideways since late last year. However, if the Fed cuts rates as hoped, and we see demand come back strong, as hoped, I’d like to see the ETF rally back to $55 initially.

We also have to consider that, according to RBC Capital analyst Christopher Dendrinos, Solar projects can be 3x more sensitive to interest rates than conventional energy projects, which “positions the solar industry to be a large beneficiary of interest rate cuts,” as quoted by Seeking Alpha. The analysts also said “the levelized cost of energy for solar improves by greater than 4% for every 50 basis-point cut in interest rates.”

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.