Some of the best solar stocks to buy might not have performed well in the last 12 to 18 months. However, the industry will undoubtedly continue to grow at a steady pace beyond the current decade. The near-term price and time correction is, therefore, an opportunity to look at the best solar stocks to buy.

In terms of growth potential, wind and solar are expected to produce over a third of the global power by 2030. With solar energy being the cheapest electricity production, big investments will continue to flow into the sector.  To put things into perspective, renewables are expected to contribute 80% of new power generation capacity by 2030. Solar alone is likely to account for more than half of this expansion.

High interest rates and relatively sluggish GDP growth have impacted industry sentiments in the last two years. However, these are temporary factors and provide a good opportunity for entry into quality solar stocks.

First Solar (FSLR)

After remaining depressed for an extended period, First Solar (NASDAQ:FSLR) stock has witnessed a sharp rally of 51% in the last month. The solar stock, however, remains attractively valued at a forward P/E of 22.2. I therefore expect the positive momentum to sustain, which is likely to be backed by strong business developments.

As of Q1 2024, First Solar reported a bookings backlog of 78.3GW that extends through 2030. Further, the solar company reported potential booking opportunities of 72.8GW. Considering the pipeline, robust growth is likely to continue in the coming years.

First Solar is also focused on building capacity as the order backlog swells. By the end of 2026, the solar energy player is targeting to have 14GW of U.S. solar capacity and 11GW internationally.

The expansion of manufacturing capacity underscores my view that top-line growth will likely remain healthy. With a strong balance sheet, swelling backlog and enhanced execution capabilities, First Solar is likely to be a massive value creator.

Canadian Solar (CSIQ)

Canadian Solar (NASDAQ:CSIQ) stock has plunged 50% in the last 12 months. The correction seems to be overdone and CSIQ stock looks deeply undervalued at a forward P/E of 8.9. Of course, it’s a risky bet, but multibagger returns are likely if the business can deliver amidst positive industry tailwinds.

Canadian Solar holds a 62% stake in CSI Solar. The latter reported solar shipments of 30.7GWh last year. Further, the battery energy storage segment has a contracted backlog of $2.5 billion.

Further, Canadian Solar holds an 80% stake in Recurrent Energy, which is focused on global project development. In the solar business, Recurrent has a pipeline of 26GWp. Additionally, the battery energy storage business has a robust pipeline of 56GWh. With a strong backlog, Canadian Solar seems to be positioned for accelerated growth.

Another point to note is that based on Q1 2024 shipments, Canadian Solar is well diversified geographically. The company has a healthy presence in North America, Latin America, China and other emerging markets. Therefore, the addressable market is significant and will ensure that the backlog continues to swell.

Array Technologies (ARRY)

Array Technologies (NASDAQ:ARRY) provides utility-scale solar tracker technology. With a global presence, the company is an attractive story to consider at a forward P/E of 11.9.

For Q1 2024, Array reported a sharp decline in revenue to $153.4 million. However, this factor is discounted in the stock, and I see multiple positives. First, the company’s order book has increased in the last two quarters. As of Q1, it was $2.1 billion. If the positive order intake trend sustains, quarter-on-quarter revenue growth will likely be healthy.

Further, Array reported a free cash flow of $45.1 million for Q1 2024. The annual FCF visibility is, therefore, $180 million. This provides Array with the flexibility to invest in expanding the product portfolio. The company will also invest $50 million in a solar manufacturing campus in Mexico, which is likely to support growth in the coming years.

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