Portfolio Manager Insights

I see compelling investment potential in solar energy

Solar-related businesses, once considered a niche market, are now a driving force in the global economy amid increasing demand for energy, says Fidelity’s Preeti Sayana.

By: Preeti Sayana
Updated: 4/13/2026
  • The economics of solar energy have transformed dramatically, according to Fidelity Portfolio Manager Preeti Sayana, who believes generating power from the sun is no longer just an environmentally conscious choice, it is now a cost-competitive alternative to traditional fossil fuels in a world starved for reliable, affordable power sources.
  • “The sun is rising on a new era of energy, and with it may come a meaningful investment opportunity,” says Sayana, who manages Fidelity Advisor® Women’s Leadership Fund. “Capital typically flows to where potential returns are strongest, and solar-related stocks have demonstrated significant strength of late.” 
  • Launched in 2019, the fund is a thematic equity strategy dedicated to advancing women's leadership and gender diversity. Accordingly, Sayana seeks companies with women in key roles in the C-suite, firms with at least one-third of their board seats held by women, and businesses with best-in-class gender-diversity initiatives.
  • Sayana points out that solar energy has shone bright in recent months, with several indicators seemingly overshadowing negative political rhetoric and a general lack of enthusiasm for renewable energy and sustainability trends.
  • “China now generates roughly 25% of its power from solar, gaining independence from foreign oil and securing access to cheap, reliable energy,” explains Sayana. “Meanwhile, demand has surged in the U.S., with backlogs in gas turbine production stretching into 2030, putting solar power in what I see as a potentially unique position to fill that gap.”
  • She adds that the growing urgency for power may be too big to be ignored, especially given the proliferation of energy-intensive data centers supporting artificial intelligence, along with mounting political pressure stemming from rising household power bills that Sayana believes will only continue to intensify. 
  • “Where will the additional power come from?” Sayana asks. “I believe solar energy offers a faster path to deployment than alternatives that take years to develop and bring online,” she adds.
  • For context, more than 80% of the U.S. interconnection queue – a waitlist of new power generation and storage projects seeking to connect to the electric grid – is solar and storage, comprising a significant share of what is expected to come online over the next couple of years. 
  • Furthermore, Sayana notes that in the third quarter of 2025, solar accounted for 58% of all new electricity-generating capacity added to the U.S. grid. Coupled with storage, that figure rises to 85%.
  • Fidelity’s research suggests that even without tax incentives, the potential opportunity for utility-scale solar power is considerable, Sayana says. Even though storage solutions remain an open question, ongoing innovation in battery technology continues to evolve and help address this challenge.
  • Seeking to benefit from the trend, she has positioned the fund accordingly, including an investment (as of February 28) in First Solar, a solar panel maker that exemplifies how the theme is unfolding amid what she views as a structural shift in U.S. trade policy favoring the company. Recent “anti-dumping” tariffs, she believes, could create some pricing upside and present opportunities to gain market share in the coming years.
  • “At the end of the day, I believe solar stocks aren’t just about capitalizing on a growing market; they reflect a broader alignment with transformative trends that may shape a future emphasizing sustainability, innovation and resilience,” Sayana concludes.
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