T1 Energy Inc. (NYSE:TE) experienced a significant rebound, surging by 10.26% on Friday, closing at $8.17 per share. This increase reflects investor confidence stemming from a more optimistic outlook for the solar energy sector over the next two years. The boost in share price positions T1 Energy among the top performers on the market for that day.
The US Energy Information Administration (EIA) released its short-term energy outlook on the same day, projecting an increase in power generation from solar and wind sources. According to the EIA, solar and wind power generation is expected to grow by 21% by 2027, up from 18% in 2023. In contrast, the combined shares of natural gas, coal, and nuclear energy are anticipated to decline from 75% in 2025 to 72% by 2027.
Projected Growth in Solar Capacity
The utility-scale solar sector is set for rapid expansion, with projections indicating an increase in generation from 290 billion kilowatt-hours (BkWh) in 2025 to 424 BkWh by 2027. Nearly 70 gigawatts (GW) of new solar generating capacity are expected to be operational within the next two years, representing a 49% rise in solar operating capacity compared to 2025 figures.
Much of this growth will be concentrated in Texas, where T1 Energy is advancing its $425 million solar cell fabrication facility, named G2_Austin. The facility aims to deliver an annual production capacity of 2.1 GW of high-efficiency TOPCon solar cells. Construction commenced last month, and T1 Energy plans to commence commercial operations by the end of this year.
In addition to the initial phase, T1 Energy has indicated that the second phase of the facility could potentially produce 3.2 GW of solar cells, with further expansion possible based on market demand. This ambitious project highlights T1 Energy’s commitment to capitalizing on the growing solar market.
Investment Considerations
While analysts recognize the potential of T1 Energy as an investment opportunity, some suggest that there may be other stocks in the AI sector with even greater potential for substantial returns. As highlighted in a recent report, certain AI stocks are being touted for their potential upside of up to 10,000%. Investors are encouraged to conduct thorough research and consider various options before making financial commitments.
As T1 Energy continues to develop its solar capabilities, the company stands at the forefront of an industry poised for significant growth, bolstered by favorable market conditions and increasing demand for renewable energy sources.
