Shoals Technologies (NASDAQ:SHLS) +6.7%, HA Sustainable Infrastructure (HASI) +4.7% and Clearway Energy (CWEN) +1.5% in Monday's trading as Bank of America reinstates coverage of the three alternative energy stocks with Buy recommendations.

BofA says it remains optimistic about Shoals' (SHLS) long-term outlook despite industry challenges such as permitting delays and interconnection issues.

Recent EIA data shows a significant increase in planned projects for 2026-27, up by 17 GW YTD and outpacing the 4.7 GW of projects deferred from 2025, which BofA says suggests near-term backlog growth with potential bookings and revenue acceleration through 2025.

Shoals' (SHLS) expanding OEM partnerships, such as with First Solar, which expects a 50% increase in module production by 2027, could further drive volume growth, according to BofA.

HA Sustainable (HASI) has consistently met or beat its financial targets since 2019, supported by disciplined underwriting and minimal credit losses, BofA says in its Buy recommendation.

HASI's (HASI) balanced capital structure, leveraging preferred equity in mature sectors and senior debt in emerging areas such as renewable natural gas ensures stability, BofA says, adding that even during SunPower's bankruptcy, the company's portfolio proved resilient, with assets mostly unaffected apart from finding new service partners.

Clearway (CWEN) distinguishes itself from peers with a growth strategy that leverages its development pipeline to support expansion without significant asset sales or equity raises, minimizing reliance on external financing and dilution risk, BofA says.

The company's 6.3% dividend yield is among the highest in the sector, with a three-year distribution per share compound annual growth rate of ~6% for 2024-27.