Shoals has 40+GW under constract, under construction, and operating



Shoals has obtained 18 patents so far



of experience in the electrical balance of system industry

The Path to Drawdown: Solar PVs

Solving climate change and staying below 1.5ºC of global warming demands a wholesale shift away from fossil fuels and toward using 100% emissions-free sources.

The most powerful source of this clean energy is the sun. Photovoltaic or PV solar panels (the kind you see on rooftops) have emerged as the predominant way of capturing the sun's energy and turning it into electricity. This industry has been growing quickly: as of 2020, solar panels are the cheapest source of electricity in most places on earth.

Solar produces ~2% of global electricity today. According to Project Drawdown, to be on a path to remain under 1.5ºC of warming, utility scale solar will need to be generating a combined ~26% of global electricity by 2050.

To get there, the PV solar industry needs to keep massively scaling over the few next decades:

  • 720 TWh of solar electricity was generated in 2019
  • 28,200 TWh is needed by 2050
  • That’s a CAGR of 12.56% from 2019 - 2050

Analysis from the IEA also predicts that, to reach a 100% clean electricity grid by 2050, annual solar panel manufacturing capacity will need to scale from 737 GW in 2020 to 4,956 GW in 2030 (p.198).


Shoals Technologies Group, Inc. (stock ticker: SHLS) provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. They offer EBOS components, such as cable assemblies, inline fuses, combiners, recombiners, disconnects, wireless monitoring systems, junction boxes, transition enclosures, and splice boxes that carry the electric current produced by solar panels to an inverter and to the power grid. They sell these products to engineering, procurement, and construction firms that build solar energy projects. Founded 1996, they're headquartered in Portland, Tennessee.

SHLS's Role in Drawdown

Shoals is a leading provider of electrical balance of system solutions for solar energy projects in the US. Electrical balance of system encompasses all of the components that are necessary to carry the electric current produced by solar panels to an inverter and ultimately to the power grid. In other words, it's all of the parts of a solar PV system other than the panels themselves.

SHLS: What We Like

We'll update this section once Shoals makes sustainability information available. 

SHLS: What We Want to See Improve

Disclose Sustainability Information

Shoals owns (p. 45) ~103,200 square feet of office, manufacturing and warehouse space and ~75,360 square feet of manufacturing, warehousing and shipping space at their headquarters in Portland, Tennessee. So far, we have no information about the carbon footprint or the energy consumption of these facilities. We'd like to see Shoals publish an annual sustainability report that includes key sustainability metrics like absolute greenhouse gas emissions, the amount of energy used and the sources of that energy.

Set Clear Goals

Once those key sustainability metrics are disclosed, we want to see Shoals set forth commitments to become even more sustainable. This means reducing greenhouse gas emissions toward zero, improving energy efficiency, switching to clean sources of energy, and reducing waste. These targets should also include the steps that Shoals plans to take to achieve them by 2025, 2030, and even 2050.

Other Solar PVs Stocks in the Climate Index

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